In a significant development, the United States has granted approval for nuclear fuel reprocessing essential for South Korea’s first nuclear-powered submarine. This breakthrough was announced following a summit on October 29, 2023, between U.S. President Donald Trump and South Korea’s President Lee Jae-myung in Gyeongju. The brief mention of the agreement appeared in the final sentences of a comprehensive “fact sheet” detailing the discussions.
The document confirms that South Korea will be allowed to construct nuclear-powered attack submarines for the first time. Details concerning the location of the submarine’s construction remain contentious, as President Trump suggested it would be built at the Philadelphia Shipyard, while South Korea’s Defense Minister Ahn Gyu-back emphasized the need for domestic construction.
South Korea’s second-largest shipbuilder, Hanwha Ocean, recently acquired the Philadelphia Shipyard from Norwegian firm Aker ASA for $100 million. This acquisition was part of a broader strategy to enhance South Korea’s naval capabilities. In a statement to The New York Sun, Hanwha’s Chief Strategy Officer Alex Wong expressed optimism about the shipyard becoming a hub for advanced naval construction once again.
The approval for nuclear fuel reprocessing aligns with President Trump’s ongoing efforts to encourage South Korea and other allies to invest in American industry. This initiative follows the historic announcement of the Korea Strategic Trade and Investment Deal in July 2023, promising $150 billion in Korean investments in the American shipbuilding sector and an additional $200 billion overall.
The fact sheet also highlights expected increases in South Korean defense spending, rising from 2 percent to 3.5 percent of its gross domestic product, projected by the World Bank to reach $18.6 trillion in 2023. South Korea has committed to a $25 billion purchase of American military equipment over the next five years, alongside providing $33 billion in comprehensive support for U.S. forces stationed in the country.
While the agreement marks a shift from previous stringent licensing requirements under the Atomic Energy Act of 1954, it has raised concerns from China, which views the expansion of South Korean nuclear capabilities as a potential threat to regional stability. The Chinese ambassador to South Korea remarked that the matter is intrinsically linked to international nonproliferation efforts.
Despite the complexities surrounding the agreement, both leaders reiterated their commitment to the complete denuclearization of North Korea and fostering peace on the Korean Peninsula. They intend to collaborate on implementing the Joint Statement from the 2018 U.S.-DPRK Singapore Summit, aimed at establishing a nuclear-free Korean Peninsula.
In conclusion, the approval of nuclear fuel reprocessing for South Korea’s submarine program represents a significant evolution in U.S.-South Korea relations and could redefine the dynamics of naval power in the region.
