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US-South Korea Deal Delayed as Nuclear Submarine Talks Stall Factsheet
Two weeks after Trump and Lee announced a deal on tariffs and security, the official factsheet remains pending. Delay linked to Seoul’s nuclear-powered submarine request.
MH
by Muhammad Hashir
2025-11-11
US-South Korea Deal Delayed as Nuclear Submarine Talks Stall Factsheet

Two weeks after US President Donald Trump and South Korean President Lee Jae Myung announced they had resolved months of negotiations over tariffs and security issues, no official agreement has yet been released.

South Korean officials attribute the delay to discussions over Seoul’s request for Washington’s approval to build a nuclear-powered submarine, a topic Lee raised publicly during a recent Asia-Pacific forum.

“Since the matter of building a nuclear-powered submarine has been raised, each of the U.S. departments seems to need some time to adjust their opinions,” South Korean Defence Minister Ahn Ho-young told local broadcaster KBS.

While the White House has approved the use of nuclear fuel for the submarine, the factsheet outlining the security and trade deal remains unfinished as relevant U.S. departments continue providing feedback and adjustments are made to the wording, according to a senior South Korean presidential official.

Market Impact and Trade Concerns
The delay has already affected financial markets and industries. The South Korean won fell as much as 0.7%, hitting a seven-month low at 1,467.5 per U.S. dollar amid investor concerns over the pending announcement. South Korean carmaker Hyundai Motor, whose U.S. battery facility was raided by immigration authorities in September, is reportedly losing around 300 billion won ($211 million) per month due to the delayed tariff deal affecting exports.

Submarine Talks and U.S. Technology Transfer
The submarine negotiations also reveal a potential divergence between Seoul’s and Washington’s expectations. While South Korea envisions domestic construction, Trump recently stated on social media that the submarine would be built at a U.S. shipyard, raising questions about U.S. willingness to transfer sensitive nuclear propulsion technology.

Trade Deal Progress
Despite these challenges, officials say that the tariff portion of the deal is essentially finalised and will be publicly announced once the joint factsheet is ready. A memorandum of understanding for South Korea’s $350 billion investment package has also been prepared but not signed. Officials note that its official announcement is required before follow-up measures, such as briefings to the South Korean parliament, can proceed.

Industry Minister Kim Jung-kwan confirmed during a parliamentary hearing that negotiations over the factsheet were in the final stages, though he did not provide a timeline for its release.

The delay highlights the complexities of balancing security cooperation, trade incentives, and sensitive technology transfers between the U.S. and South Korea, even after high-profile summit meetings.
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