South Korea will move forward with the United States on building nuclear-powered submarines, President Lee Jae Myung announced on Friday, after both sides finalized a long-awaited agreement covering security, trade, tariffs, and industrial cooperation.
Consequently, analysts assert that developing these atomic-powered vessels will significantly advance Seoul’s naval and defense capabilities, placing it within a select group of nations operating such sophisticated military technology.
Lee told reporters that the bilateral negotiations, covering trade, tariffs, and security, a major variable for the nation’s economy, have concluded successfully. Furthermore, Seoul secured support to expand its authority over uranium enrichment and spent-fuel reprocessing, according to the president.
China Voices Concerns
However, China’s ambassador to Seoul, Dai Bing, immediately voiced caution over the deal, stating that the partnership transcends commercial interests and directly affects the global non-proliferation regime and regional stability. Though US President Donald Trump previously claimed the submarines would be built in Philadelphia shipyards, National Security Advisor Wi Sung-lac settled the dispute on Friday. Wi confirmed that leaders discussed the construction proceeding solely on the premise that South Korea would host the building process domestically.
Trade and Investment Details
Moreover, as part of the encompassing agreement, South Korea committed to purchasing $25 billion worth of American military equipment and pledged $33 billion in comprehensive support for US Forces Korea. The deal includes tariff agreements: the $350-billion package contains $200 billion in cash investment, $150 billion in shipbuilding cooperation, and keeps auto tariffs at 15%.
Specifically, the fact sheet noted that semiconductor tariffs will match any future favorable terms offered in a separate, large-volume trade agreement. South Korea, home to tech giants like Samsung and SK Hynix, produces high-end chips that power the global economy.
