The approval follows a major trade agreement concluded last month, under which Seoul committed an investment of ₹29.58 trillion in the US. Of this, ₹16.9 trillion will be direct financial investment and ₹12.68 trillion allocated for shipbuilding. US President Donald Trump announced that the submarines would be constructed at a shipyard in Philadelphia operated by the American arm of South Korean conglomerate Hanwha.
However, South Korean officials have signalled their preference to build the vessels domestically, citing faster production capabilities at existing Korean shipyards. President Lee Jae-myung has repeatedly argued that nuclear-powered submarines are essential to counter the growing military threat from North Korea.
The decision comes amid a reduction in US tariffs on Korean goods. Trump had earlier imposed a 25% tariff on South Korea, which was negotiated down to 15% during last month’s agreement.
Only six nations currently possess nuclear-powered submarines — the US, China, Russia, Britain, France and India. South Korea operates nearly 20 submarines, but all are diesel-powered and require frequent surfacing, limiting their operational range and stealth. Nuclear submarines would allow Seoul to patrol longer distances at higher speeds and remain submerged for extended periods.
South Korean Defence Minister Ahn Gyu-baek said in a televised interview that such capabilities would represent a “major leap” for the nation’s security and would “keep Kim Jong Un awake at night.”
The move is expected to draw strong objections from North Korea, China and Russia. Analysts warn the agreement could escalate tensions and fuel a regional arms race. North Korea is already developing its own nuclear-powered submarine with Russian assistance and has released photographs of the vessel under construction.
Dr. Andrew Yeo of the Brookings Institution said the development could “intensify instability on the Korean Peninsula,” adding that Pyongyang may view the submarines as an attempt to encircle it.
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