U.S. Backs South Korea’s Nuclear Submarine Drive, Sets Conditional Path for Enrichment

Overview

• The joint fact sheet records U.S. approval for Seoul to pursue nuclear-powered attack submarines and notes support for civil uranium enrichment and reprocessing consistent with the bilateral 123 agreement and U.S. law.
• Washington and Seoul outlined tariff reductions on Korean goods to 15 percent from 25 percent in exchange for a pledged $350 billion investment in the United States.
• Reporting details indicate $150 billion is slated for U.S. shipbuilding and $200 billion for other industrial sectors, as described in secondary coverage of the agreement.
• Negotiations described by people familiar with the talks explore Korean-led joint production of submarines for both navies across sites in both countries, though the scope and sequencing remain unresolved.
• Industry upgrades will be required to execute any plan, with Hanwha’s Philadelphia yard not currently nuclear-capable and fuel sourcing identified as a key implementation issue in the fact sheet.