The joint fact sheet released after the Korea-US summit supports procedures for South Korea's peaceful uranium enrichment and spent nuclear fuel reprocessing, opening a new phase in nuclear cooperation. South Korea pledged $350 billion in strategic investments in the US and secured tariff reductions on autos. Concerns over industrial hollowing-out and capital outflows persist.
The joint fact sheet released on November 14 recalibrates the Korea-US alliance, translating negotiations into a blueprint for security, economic, and technology partnership following the summit between President Lee Jae Myung and US President Donald Trump last month. The United States stated it "supports procedures that could lead to South Korea's peaceful enrichment of uranium and reprocessing of spent nuclear fuel, within the framework of the U.S.–ROK nuclear cooperation agreement and consistent with U.S. legal requirements." This marks the first institutional step to ease long-standing restrictions for South Korea, a top-five global nuclear power producer constrained in handling nuclear materials.
Approval extends to nuclear-powered submarines, signaling US endorsement for Seoul's pursuit of such capabilities and reactor fuel, previously off-limits. With spent fuel storage facilities expected to reach capacity by 2030, reprocessing addresses mounting pressure, as the current agreement prohibits it and bars low-enriched uranium production without consent. Implementation requires revising the bilateral civil nuclear pact and US congressional approval, amid nonproliferation sensitivities.
Economically, South Korea pledged $350 billion in strategic US investments: $150 billion for shipbuilding cooperation, $200 billion in cash installments, $25 billion for US military equipment, and $33 billion for US Forces Korea support. Tariffs on Korean autos and parts drop from 25% to 15%, aligning with Japan and the EU, while semiconductor tariffs match competitors. Defense spending will rise to 3.5% of GDP.
President Lee met leaders of the seven major conglomerates on Sunday to discuss preventing industrial hollowing-out. Korea became the top US investor in 2023 with $21.5 billion in new facilities, plus the $200 billion cash and "Make American Shipbuilding Great Again" (MASGA) initiative, forming the $350 billion package. Risks include capital outflows exacerbating dollar shortages, with the Bank of Korea capping annual transfers at $20 billion. Structural reforms in regulation, finance, public sector, pensions, education, and labor are urged to maintain domestic competitiveness. China has expressed concerns over the nuclear submarine, viewing it as destabilizing regional nonproliferation.