In a significant development for South Korea’s defense capabilities, the United States has approved a crucial agreement for nuclear fuel reprocessing, enabling South Korea to pursue its first nuclear-powered submarine. This decision follows a summit between U.S. President Donald Trump and South Korean President Lee Jae-myung on October 29, 2023, in Gyeongju. The agreement allows South Korea to build nuclear-powered attack submarines, a notable shift in military strategy.
The official announcement was included in a brief segment of a lengthy fact sheet detailing the summit’s outcomes. While the document confirms South Korea’s ability to construct these submarines, it does not specify whether the first vessel will be built in the United States, a point of contention between the two nations. South Korea’s Defense Minister Ahn Gyu-back has advocated for domestic construction, arguing it is the most logical approach. In contrast, President Trump stated on social media that the submarine would be constructed at the Philadelphia Shipyard.
The Philadelphia Shipyard, recently acquired by South Korea’s Hanwha Ocean for $100 million, is seen as a critical asset in this venture. Hanwha’s Chief Strategy Officer, Alex Wong, expressed optimism about the partnership, stating, “With new technologies and investment in American workers, Philly Shipyard can again become a center for advanced commercial and naval construction.” This sentiment aligns with President Trump’s ongoing campaign to boost American industry through foreign investments.
The agreement is part of the broader Korea Strategic Trade and Investment Deal, which aims to solidify the economic ties between the two nations. It includes $150 billion in Korean investment in the shipbuilding sector and an additional $200 billion in other investments, while reducing tariffs on imports, particularly vehicles.
South Korea has committed to increasing its defense spending from 2 percent to 3.5 percent of its gross domestic product, which is projected to reach $18.6 trillion in 2023. Moreover, the nation plans to allocate $25 billion towards American military equipment over the next five years, along with providing comprehensive support valued at $33 billion for U.S. forces stationed in South Korea.
During the summit, both leaders reiterated their commitment to achieving complete denuclearization of North Korea and ensuring peace on the Korean Peninsula. They pledged to work together to implement the Joint Statement from the 2018 U.S.-DPRK Singapore Summit, which aimed for a nuclear-free Korean Peninsula. President Lee noted the challenges faced during negotiations, highlighting tensions over wording and concessions.
The approval for South Korea’s nuclear submarine program marks a pivotal change in U.S. policy, which has historically adhered to strict regulations outlined in the Atomic Energy Act of 1954. This agreement amounts to a de facto waiver of those regulations, reflecting a significant evolution in military cooperation between the two allies.
The prospect of South Korean nuclear-powered submarines entering the Pacific has raised concerns in China, which views this development as a potential threat to regional stability. The Chinese ambassador to South Korea has stated that such advancements are closely tied to international nonproliferation efforts, urging caution as South Korea moves forward with its plans.
As South Korea embarks on this new chapter in its military history, the implications for regional security and international relations will be closely monitored by global powers.
