South Korean President Lee Jae Myung announced on Friday that South Korea and the United States (U.S.) finalized a joint fact sheet on trade, defense, and technology. He called the commitments “broad and historic,” aimed at boosting economic and security cooperation.
Nuclear Submarines and Defense Cooperation
Lee said South Korea will build nuclear-powered submarines with U.S. support. Seoul has long sought this capability to address regional threats. The two nations also agreed on expanded defense arrangements and joint mechanisms to protect key supply chains.
“This partnership will strengthen Korea’s critical industries and reinforce security,” Lee said during a televised briefing.
Trade Deal Cuts U.S. Tariffs
The deal reduces U.S. import duties on South Korean products from 25% to 15%. This applies to automobiles, auto parts, timber, lumber, pharmaceuticals, and semiconductors. The White House described the pact as a “new chapter” in U.S.-South Korea relations.
Industrial and Technological Investments
South Korea will invest $150 billion in U.S. shipbuilding and $200 billion in strategic sectors. The investments will begin after a new U.S.–Korea memorandum of understanding is signed. The agreement also covers cooperation on artificial intelligence, next-generation energy, nuclear technology, and semiconductor manufacturing.
The pact includes U.S. backing for South Korea’s plan to reprocess spent nuclear fuel. Washington has previously raised proliferation concerns about this plan.
Boosting Security and Economic Growth
The leaders emphasized that the agreement strengthens regional security and long-term economic resilience. High-level visits, including Trump’s state visit to Gyeongju in October and Lee’s trip to Washington in August, paved the way.
South Korean officials said the deal positions the country for technological and military advancement while encouraging hundreds of billions of dollars in industrial investment.
Conclusion: Strengthened Alliance and Future Prospects
The South Korea-U.S. agreement marks a major milestone in the bilateral partnership. By combining trade, defense, and technology cooperation, the pact strengthens security, boosts industrial growth, and positions both nations for future strategic and economic success.
