Canada said it eventually plans to purchase up to a dozen new subs, with a reported price tag of $60 billion CAD ($43.5 billion USD), to replace the Royal Canadian Navy's current Victoria-class boats.
Hanwha informed Austal of the decision in a Sept 25 letter that it was dropping the bid over what it called "unprecedented" demands from the Aussie ship builder.
Partnerships with outside industry are a cornerstone of the kingdom’s ambitious growth strategy.
If selected, Hanwha could construct and deliver a first SKK-III to Poland in six years from contract award.
The contract is a major win for the South Korean firm, which only recently won approval from the US Navy to do such work.