The United States and South Korea have released details of a trade agreement that includes a $150bn Korean investment in the US shipbuilding sector, approved by the United States.
South Korea and U.S. signed on Friday, November 14, a memorandum of understanding, implementing the agreement announced on July 30.
Under the agreement, the White House said on Thursday that South Korea will build nuclear-powered attack submarines as part of the Korea Strategic Trade and Investment deal.
A fact sheet released by the White House said the US gave approval for Seoul to build nuclear-powered attack submarines and that South Korea will invest $150bn in the shipbuilding sector.
The fact sheet stated that “This deal includes $150 billion of Korean investment in the shipbuilding sector approved by the United States, which is referred to as the Approved Investments.”
In addition, the United States approved the construction of nuclear-powered attack submarines in South Korea.
“The United States has given approval for the ROK [Republic of Korea] to build nuclear-powered attack submarines. The United States will work closely with the ROK to advance requirements for this shipbuilding project, including avenues to source fuel.”
The joint announcement comes after a meeting on October 29 between South Korean president Lee Jae Myung and U.S. president Donald Trump, where they agreed to modernize and expand the capacity of American shipbuilding industries, and to invest in U.S. shipyards and America’s workforce.
President Lee Jae Myung welcomed Donald J. Trump for a state visit to South Korea on October 29.
This marks the first time in Korean history that a state visit has been hosted in Gyeongju and follows on the two leaders’ first meeting in Washington on August 25.
It is also the first time that South Korea has welcomed the same leader for a second state visit.
In light of Trump’s visit to South Korea, they declared a new chapter in the U.S.-ROK alliance.
Both countries committed to collaborate further through a shipbuilding working group, including on maintenance, repair, and overhaul, workforce development, shipyard modernization, and supply chain resilience.
These initiatives will increase the number of U.S. commercial ships and combat-ready U.S. military vessels as quickly as possible, including the potential construction of U.S. vessels in South Korea.
The fact sheet said the “US supports the process that will lead to the ROK’s civil uranium enrichment and spent fuel reprocessing for peaceful uses.”
South Korea’s ministry of trade, industry and resources gave to the press the memorandum of understanding signed on Friday between the two nations.
As disclosed, “Investments in the United States are intended to focus on sectors deemed to advance economic and national security interests, including but not limited to shipbuilding, energy, semiconductors, pharmaceuticals, critical minerals, and artificial intelligence/quantum computing.
“As approved by the Investment Committee, Korea, shall directly or through the Consultation Committee, to the extent necessary, facilitate the Approved investment including through direct investments by Korean companies in the U.S. shipbuilding sector, as well as loan guarantees to Korean shipbuilders and other measures to finance U.S. shipbuilding. To the extent that Korea fails to facilitate any approved investments in accordance with this memorandum, the United States may impose such tariff rate or rates on Korean imports into the United States at the rate determined by the President.”
