US, S. Korea Discuss Jointly Building Nuclear-Powered Submarines

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During a televised briefing on the fact sheet, Lee said Korea had continued to stand its ground in talks to finalize the overall trade and tariff pact since the Trump visit. 

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“The US government maintained that the general framework had already been settled during the summit. But when it came to drafting the detailed text, they presented a wide range of differing opinions,” Lee said.  “The lengthy process was unavoidable — it was the only way we could fully exercise the one power we had, which was to hold firm.”

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Still, the joint statement leaves several questions about the submarine plan swirling as talks continue. The Philly Shipyard, which is owned by Korean defense giant Hanwha, is not currently equipped to make nuclear-class submarines, though the company is preparing to build subs under any deal and has an internal target of producing 2-3 submarines within a decade, including potentially in Philadelphia, some of the people said.

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“Hanwha Philly Shipyard was a centerpiece yard in America’s storied naval shipbuilding past, and our commitment to it will chart the way toward America’s advanced shipbuilding future,” Hanwha Chief Strategy Officer Alex Wong said in a statement that did not directly touch on the US-South Korea talks. 

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Trump is continuing to push for the US to receive two submarines and believes they should be provided for free, according to one of the people. Given that submarines can cost several billion dollars, it would be a steep ask.  

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In a written statement on Thursday, Lee’s presidential office said that characterizing South Korea as pushing back against US demands or that the US had asked for two submarines for free was not a reflection of the state of discussions. 

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South Korea has long sought nuclear-powered submarines and during his meeting with Trump, Lee asked Trump to provide fuel for them. South Korea says it needs low-enriched uranium — below 20% enrichment — from the US but, for that, the two nations would need to amend or find a way to reconcile their nuclear energy pact, which prohibits Seoul from using such fuel for military use.

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While Trump’s October announcement appeared to provide a green light for South Korea’s goal to possess nuclear submarines, Seoul wants to build them at home — and is seeking the technology to do so. The US is also looking to increase its own fleet, with construction of its foremost attack submarine, the Virginia-class, beset by cost overruns, delays, and labor shortages.

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The White House has declined to specify what class of submarine it wants built — leaving open the scenario that it might pressure the Koreans to build US-class subs like the Virginia class, at least in part, rather than their own design. But that goes against South Korea’s initial wishes for a smaller design. 

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And the potential of that raises its own set of questions and potential controversies, including whether Virginia-class subs would be partially built in South Korea. The joint statement’s reference to “potential construction of U.S. vessels in the ROK” nodded to the possibility, though didn’t explicitly specify military vessels.

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“Even though Trump supposedly approved it, that doesn’t mean it will actually happen overnight,” said Kim Dong-yup, a professor at the University of North Korean Studies and retired South Korean Navy officer. “These things take years, even a decade to accomplish and there are countless legal and policy constraints in the US, including non-proliferation and secrecy restrictions. If Trump leaves office, it’s entirely possible that US agencies will step in and block the whole thing.”

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The White House declined comment other than to say in a statement, from spokeswoman Anna Kelly, that Trump is bolstering US maritime power “including by securing historic investments from the Republic of Korea to modernize and expand our shipbuilding capacity.”

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—With assistance from Alastair Gale.

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