The decision, announced on October 30, elevates Seoul into the small group of nations operating nuclear-powered vessels.

South Korean President Lee Jae Myung said the move will boost surveillance of North Korean and Chinese submarines, while construction will take place at the Philadelphia shipyard owned by Hanwha Group.

Bilateral Pact and Defense Links

Trump and Lee finalized a trade deal cutting U.S. auto tariffs to 15 percent in exchange for South Korean investment.

Trump said the pact would make U.S. “shipbuilding a BIG comeback,” citing $150 billion in Korean funding for American yards.

Lee sought U.S. permission to acquire nuclear propulsion fuel, arguing that diesel submarines lack underwater endurance.

Safeguards and Non-Proliferation

Experts warned the plan could challenge Nuclear Non-Proliferation Treaty limits. The U.S. has shared nuclear-propulsion technology only with Britain, back in the 1950s.

Daryl Kimball of the Arms Control Association said the program “raises all sorts of questions,” noting the need for IAEA oversight of highly enriched uranium use.

Regional and Strategic Impact

The announcement followed North Korea’s March 2025 unveiling of its first nuclear-submarine prototype and rising tension in Northeast Asia.

China, itself a nuclear-submarine power, recently imposed sanctions on Hanwha’s U.S. subsidiaries, highlighting the geopolitical ripple ahead of Trump’s meeting with President Xi Jinping.