South Korea and US finalise security and trade deal including nuclear submarine development, $25 billion military purchases and tariff agreements.
SEOUL: South Korea will proceed with developing nuclear-powered submarines in partnership with the United States following a comprehensive security and trade agreement.
President Lee Jae Myung announced the breakthrough after lengthy bilateral negotiations covering trade, tariffs and defence cooperation.
“One of the greatest variables for our economy and security – the bilateral negotiations on trade, tariffs and security – has been finalised,” Lee told reporters.
He confirmed both countries agreed to “move forward with building nuclear-powered submarines” as part of the arrangement.
Seoul secured expanded authority over uranium enrichment and spent-fuel reprocessing under the agreement.
National security advisor Wi Sung-lac clarified that submarine construction would occur entirely within South Korea despite previous uncertainty.
“So the question of where construction will take place can now be considered settled,” Wi stated.
The partnership includes South Korea’s commitment to purchase $25 billion worth of US military equipment.
Seoul will also provide $33 billion in comprehensive support for US Forces Korea stationed in the country.
On trade, both nations agreed to maintain reciprocal tariffs while lowering auto tariffs to 15%.
The $350 billion investment package comprises $200 billion in cash investment and $150 billion for shipbuilding cooperation.
Semiconductor tariffs were excluded from the immediate agreement but will receive favourable terms in future negotiations.
China’s ambassador to Seoul Dai Bing expressed caution about the nuclear submarine technology transfer.
The partnership “goes beyond a purely commercial partnership, directly touching on the global non-proliferation regime,” Dai warned.
South Korea’s semiconductor exports reached a record $142 billion in 2024, representing over 20% of total exports. – AFP
