OTTAWA — Canada and South Korea have signed a new defence agreement, roughly a month after Prime Minister Mark Carney urged middle powers to band together in the face of “great power” economic coercion.

Following negotiations that concluded in October, the two countries signed a deal Wednesday related to the exchange and protection of classified military and defence information.

In October, Ottawa said the agreement would be a legal base to improve collaboration on everything from defence procurement and industrial security to research.

“This is an important step for our two countries,” Defence Minister David McGuinty said Wednesday. “It’s critical that Canada expands its defense industry, but it’s equally important that we enhance our defense relations around the world, and that’s what today is really all about.”

McGuinty and Foreign Affairs Minister Anita Anand met Wednesday with their South Korean counterparts Ahn Gyuback and Cho Hyun.

At the meeting, the countries agreed to update their strategic partnership to reflect current geopolitical realities.

They also agreed to begin negotiations on a defence cooperation agreement, including a legal framework for the cooperation of the countries’ military forces.

Hyun said South Korea and Canada need to engage in deeper cooperation in terms of defence and security amid geopolitical uncertainties.

“We believe that security and economy are very closely linked so our two countries will continue to deepen our economic cooperation,” he said, noting that the countries will work to increase trade and investments. “In defence, industry and other areas, I hope that we become the closest partners out there.”

Gyuback said Wednesday that Canada is a key security partner and that the countries will work to promote peace and stability across the Indo-Pacific and the Arctic.

In a speech at the World Economic Forum in Davos last month, Carney urged middle powers to work together against “American hegemony” and the efforts of great powers to subjugate smaller countries.

The Carney government is seeking to double non-U.S. exports in the next decade in response to the unstable geopolitical and trading environment ushered in by the re-election of U.S. President Donald Trump.

Anand said that strategy of trade diversification is the “pragmatic aspect of our foreign policy that responds to the current global environment, including on an economic front.”

“What Canada is doing in this era is coalescing around like-minded countries on initiatives that will grow the domestic economy and advance our security and defense overall,” Anand said. “This is an era where one cannot separate defense and security, on the one hand, from economic results on the other.”

The deal also comes as South Korean firm Hanwha Oceans is competing with German submarine manufacturer TKMS for a multi-billion-dollar contract to supply Canada with up to 12 new submarines.

Anand said the procurement process is ongoing and doesn’t involve political intervention. She said manufacturers are in the process of compiling their bids to meet technical and design requirements.

The South Korean ministers said they pitched their country’s submarines at the meeting Wednesday.

“We did talk about the many benefits that we could bring to Canada with our submarines,” said Hyun, who argued that South Korea’s technology in ship building is always on time and on budget. “We will be able to deliver two years ahead of Germany.”

Industry Minister Mélanie Joly recently told reporters that Canada is looking for industrial benefits beyond just the subs themselves, noting Canada wants to expand manufacturing of vehicles from South Korean, German and Chinese automakers.

Last month, the federal government signed an agreement with South Korea with the goal of bringing South Korean auto manufacturing to Canada.

On Monday, Joly signed a joint declaration of intent with her German counterpart to increase cooperation in auto and battery manufacturing and critical minerals.

Conservative critic for national defence James Bezan argued in a statement that more non-binding agreements don’t increase the operational strength and capabilities of the Canadian Armed Forces.

“What we need is for the Liberal government to listen to our service men and women and buy much-needed equipment quickly, based on what we need to defend ourselves,” said Bezan. “Nearly a year into his term, and Carney has changed the rhetoric, but not the reality of what kit our armed forces have to do their jobs.”

This report by The Canadian Press was first published Feb. 25, 2026.

— With files from Sarah Ritchie and Kyle Duggan

Catherine Morrison, The Canadian Press