- U.S. will transfer nuclear-powered submarine propulsion technology to South Korea as part of a massive trade and investment deal, boosting alliance deterrence.
- Construction slated at Philadelphia Shipyard promises U.S. jobs and shipyard revival but raises industrial strain, proliferation concerns, and regional strategic tensions.
GYEONGJU, South Korea – In a bold move that’s already rippling through global defense circles, President Donald Trump announced Wednesday that the United States will share its closely guarded nuclear-powered submarine technology with South Korea.
The deal, struck during bilateral talks here on the sidelines of the APEC summit, ties the tech transfer to a sweeping trade agreement worth hundreds of billions of dollars – a classic Trumpian blend of military muscle and economic arm-twisting.
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Trump broke the news in a pair of posts on Truth Social, his go-to platform for unfiltered announcements.
“South Korea will be building its Nuclear Powered Submarine in the Philadelphia Shipyards, right here in the good ol’ U.S.A.
Shipbuilding in our Country will soon be making a BIG COMEBACK. Stay tuned!!! President DJT,” he wrote in one.
In another, he elaborated on the broader pact: “South Korea has agreed to pay the USA 350 Billion Dollars for a lowering of the Tariff’s charged against them by the United States.
Additionally, they have agreed to buy our Oil and Gas in vast quantities, and investments into our Country by wealthy South Korean Companies and Businessmen will exceed 600 Billion Dollars.
Our Military Alliance is stronger than ever before and, based on that, I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now.
A great trip, with a great President of South Korea!”
Details of The Nuclear-Powered Submarine
The submarine in question – South Korea’s first nuclear-powered vessel – is slated for construction at the Philly Shipyard in Pennsylvania, a facility acquired last year by South Korea’s Hanwha Group.
That detail hasn’t been lost on industry watchers, who see it as a savvy way to funnel Seoul’s cash back into American jobs.
South Korean officials confirmed that $150 billion of the investment will target U.S. shipbuilding revival, with tariffs on Korean goods dropping from 25% to 15%.
“This is about modernizing our alliance,” South Korean President Lee Jae-myung said ahead of the meeting, emphasizing Seoul’s plans to hike defense spending and ease the U.S. financial load in the region.
Lee was quick to clarify: no interest in nuclear weapons, just the propulsion tech to power subs that can operate longer and quieter than Seoul’s current diesel-electric fleet.
This isn’t just a bilateral win; it’s happening against a powder keg in the Indo-Pacific. North Korea’s been flexing hard lately – they unveiled their own nuclear-powered sub back in March and just this week claimed a successful test of new cruise missiles.
China, meanwhile, looms large, with Trump’s upcoming sit-down with President Xi Jinping here in South Korea adding extra stakes.
Sharing sub tech with Seoul could tilt the balance, giving U.S. forces a stealthier partner to counter Beijing’s expanding naval reach.
As one Pentagon analyst put it off the record, “This is deterrence with dividends – stronger alliances, beefed-up U.S. yards, and a message to Pyongyang and beyond.”
US Pays Hundreds of Billions for Nuclear Submarine Fleet
But let’s zoom out: Trump’s submarine diplomacy isn’t happening in a vacuum. The U.S. Navy’s been in a submarine-building frenzy of its own, grappling with delays and ballooning costs to keep its undersea edge sharp.
Just this spring, General Dynamics Electric Boat snagged a $12.4 billion contract to crank out two more Virginia-class attack subs, part of a push to hit two boats a year by the late 2020s.
Those Virginia-class vessels – quiet hunters with Tomahawk missile tubes – are the backbone of America’s fleet, but productions lagged at about 1.2 per year lately, thanks to supply chain snarls and a shortage of nuclear-certified welders.
The Navy’s got 23 Virginias in service now, with plans to swell that to 66, but experts warn the industrial base is stretched thin.
Enter the Columbia-class, the behemoths meant to replace the aging Ohio-class ballistic missile subs that carry America’s sea-based nukes.
The lead boat, USS District of Columbia (SSBN-826), is over 60% complete as of late October, with major modules heading to Groton, Connecticut, by year’s end.
The Senate just greenlit funding for up to five more in fiscal 2026, aiming for one per year through 2035 in a program that’s already topped $126 billion.
Admiral William Houston, head of the Naval Nuclear Propulsion Program, touted progress on reactor cores for the first three Columbias during a recent Senate hearing, but he didn’t sugarcoat the hurdles: talent wars, supply crunches, and the need to rethink everything from additive manufacturing to low-enriched uranium reactors.
“We’re in a battle for talent,” Houston said, echoing concerns that could echo in Philly as Korean cash flows in.
Other Nations Build Their War Fleets
And then there’s AUKUS, the trilateral pact with Australia and the UK that’s Trump’s other submarine headache-turned-handshake.
Earlier this month, he reaffirmed U.S. commitment to selling up to five Virginia-class subs Down Under, easing fears after a Pentagon review rattled Canberra.
“We’re going full steam ahead,” Trump told Australian Prime Minister Anthony Albanese during a White House huddle on October 20.
Australia’s already ponied up $3 billion to juice U.S. production, with the first used Virginias due in the early 2030s and a new Block VII boat by 2038.
But U.S. admirals like Daryl Caudle have been blunt: without doubling shipyard output – from 1.13 Virginias a year to over two – AUKUS boats might never sail.
The UK’s jumping in too, planning up to 12 SSN-AUKUS subs to replace its Astutes from the late 2030s, sealed by the Geelong Treaty with Australia in July.
South Korea’s entry feels like AUKUS 2.0, minus the formal branding. It’s got folks in Tokyo and Canberra buzzing about expansion – maybe looping in Japan or even Norway to spread the load on U.S. yards.
“AUKUS delivers something critical to INDOPACOM,” said Adm. Samuel Paparo in recent testimony, calling an Indian Ocean sub base a “key advantage.”
A Boost to the U.S. Workforce
Critics, though, worry about proliferation risks and whether Washington’s spreading itself too thin. Even under AUKUS, the U.S. hasn’t fully handed over sub blueprints – just propulsion know-how – and Seoul’s deal treads similar lines, focused on fuel, not fissile material for bombs.
Fack in Philadelphia, the news landed like a lifeline. The Philly Shipyard, with its 68 acres along the Delaware River, has been eyeing a renaissance since Hanwha took over.
Now, with Korean engineers and American steelworkers teaming up, it could become ground zero for a trans-Pacific sub surge.
Local union reps are already talking thousands of jobs, from welders to machinists, in a Rust Belt comeback story Trump loves to tout.
As Trump wraps his Asia tour – North Korea next on the radar, ironically – this deal underscores his worldview: alliances aren’t free, but they’re force multipliers.
Whether it supercharges U.S. shipyards or strains them further, one thing’s clear: the underwater arms race just got deeper. Updates are coming fast; for now, the Philly Shipyard’s humming with possibility.
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