US and South Korea Sign Historic $150B Nuclear Submarine Deal

Major Defense and Economic Cooperation Agreement

The United States and South Korea have entered into a landmark $150 billion trade agreement to develop nuclear-powered submarines, marking a significant escalation in their bilateral defense cooperation. The deal, signed by South Korean Minister of Trade, Industry and Energy Kim Jung-kwan and US Commerce Secretary Howard Lutnick, includes provisions for the US to support South Korea in developing nuclear submarine technology and securing nuclear fuel.

Comprehensive Economic Package

The agreement is part of a broader economic package that includes an additional $200 billion in investments across various industrial sectors. This comprehensive deal represents one of the largest economic and defense agreements between the two countries in recent history. The investment is expected to have far-reaching implications for both nations' economies and defense industries.

Strategic Implications

The nuclear submarine development program is seen as a critical component of South Korea's military modernization efforts, enhancing its naval capabilities in the region. The agreement was hailed by South Korean President Lee Jae Myung as a major achievement in bilateral relations, following his meeting with US President Donald Trump in October 2025.

Economic and Defense Impact

The deal not only strengthens military cooperation but also deepens economic ties between the two nations. It demonstrates a commitment to mutual security interests while providing significant economic benefits through job creation and technology transfer. The agreement is expected to have positive ripple effects across various industries in both countries.