The United States and South Korea unveiled a sweeping trade and security agreement on Friday that will allow Seoul to build nuclear-powered submarines for the first time, alongside a combined $350bn South Korean investment in U.S. industrial sectors.
President Lee Jae Myung confirmed the breakthrough during a press briefing in Seoul, describing the accord as a decisive step in reshaping the country’s economic and defense posture.
The agreement authorizes South Korea to develop nuclear-powered attack submarines under a new partnership spanning shipbuilding, artificial intelligence, and the nuclear industry, according to a White House fact sheet.
The document stated that Washington had granted approval for Seoul to proceed with the submarine program and that South Korea would inject $150bn into the U.S. shipbuilding sector, with an additional $200bn earmarked for broader U.S. industries. “One of the greatest variables for our economy and security – the bilateral negotiations on trade, tariffs and security – has been finalised,” he said. The two governments, he added, had agreed to “move forward with building nuclear-powered submarines.”
Yonhap News Agency reported that South Korea’s investment commitments were made in exchange for the U.S. lowering tariffs on Korean exports from 25 percent to 15 percent.
President Lee said the U.S. had formally authorized the Republic of Korea to develop nuclear-powered attack submarines, a capability possessed by only a handful of nations.
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He also noted that the deal includes expanded South Korean authority over uranium enrichment and spent-fuel reprocessing, an area that has long been closely restricted under U.S. nonproliferation rules.
The joint fact sheet said the two sides would create a shipbuilding working group to increase the number of U.S. commercial and military vessels, deepening cooperation between their naval industries.
Yonhap reported that Seoul aims to acquire at least four 5,000-ton, conventionally armed nuclear-powered submarines by the mid-2030s, a timeline that would significantly elevate South Korea’s defense capabilities amid regional tensions.
China has already voiced concern over the deal. Beijing’s ambassador to Seoul, Dai Bing, warned Thursday that the submarine partnership “goes beyond a purely commercial partnership” and affects both the global nonproliferation regime and the stability of the Korean Peninsula.
North Korea has not commented but is widely expected to respond. Pyongyang routinely accuses the U.S. and South Korea of preparing for conflict and has condemned previous trilateral security initiatives involving Washington, Seoul, and Tokyo.