Gyeongju [South Korea], October 30 : US President Donald Trump on Thursday announced that he has given South Korea "approval" to build a nuclear-powered Submarine.
This development comes after President Donald Trump held a discussion with his South Korean counterpart Lee Jae Myung during his visit to Gyeongju.
"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," Donald Trump said in a post on Truth Social.
https://truthsocial.com/@realDonaldTrump/115459650821125830
In a subsequent post on social media, the president announced that the submarine would be built in the United States, specifically in the "Philadelphia Shipyards".
"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," Trump said.
As reported by CNN, South Korean President Lee Jae Myung had earlier indicated that he would make efforts to get US approval to acquire fuel for nuclear-powered submarines, which South Korea wants to build so it can keep up with North Korean and Chinese submarines.
"If the president would make a decision to allow us to receive fuel for nuclear-powered submarines, we would appreciate it," Lee said ahead of his bilateral meeting with Trump on Wednesday.
This is a major step, considering that earlier this year, North Korea had shown off its under-construction nuclear-powered submarine, CNN reported.
Additionally, Trump also stated that South Korea has agreed to pay the USD 350 billion for lowering of the Tariff's charged against them by the United States.
"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," he also stated.
Earlier, South Korean presidential chief of staff for policy Kim Yong-beom told reporters in Gyeongju that South Korea has reached an agreement on the details of a trade deal with the US
The agreement on the big framework of the trade deal in July had brought the reciprocal tariff down to 15 per cent, but South Korea's automobile exports were still subject to a 25 per cent tariff, and details of the agreement were not finalised until Trump met with Lee on the sidelines of APEC.
Among the USD 350 billion in investments Trump demanded upfront, Kim said USD 200 billion will be paid in cash and USD 150 billion through shipbuilding cooperation led by South Korean companies, CNN reported.
The USD 200 billion investment will be done over many years, with yearly investment limited to USD 20 billion depending on the business progress, Kim said.
He added that such a limit would make it manageable for the South Korean foreign-exchange market, which was the biggest concern for Seoul when asked to pay USD 350 billion in cash originally.