South Korea to spend $25 billion on US weapons

South Korean President Lee Jae Myung and U.S. President Donald J. Trump used their state visit in Gyeongju to announce sweeping economic and defence commitments, including Seoul’s plan to buy US$25 billion in U.S. military equipment by 2030 and Washington’s approval of US$150 billion in Korean investment under a new strategic industry deal.

The agreements form part of what both leaders called a “new chapter” in the alliance, building on Trump’s 2024 return to office and Lee’s election earlier this year, Caliber.Az reports, citing the White House.

Seoul also outlined plans to increase defence spending to 3.5% of GDP, while confirming US$33 billion in support for U.S. Forces Korea in line with domestic legal requirements.

Central to the announcements is July’s Korea Strategic Trade and Investment deal, under which the U.S. has cleared US$150 billion in Korean shipbuilding investment—labelled “Approved Investments”—and expects a further US$200 billion once a related Memorandum of Understanding is finalised.

The initiative spans shipbuilding, semiconductors, critical minerals, pharmaceuticals and advanced computing, and also includes tariff adjustments designed to stabilise bilateral trade.

Seoul and Washington said the investment framework is aimed at reinforcing supply chains while boosting U.S. industrial capacity, particularly in shipyards. The U.S. has also given approval for South Korea to build nuclear-powered attack submarines and pledged deeper cooperation in space, cyber defence and AI-enabled military systems.

Commercial ties were further strengthened with South Korean companies announcing US$150 billion in foreign direct investment into the U.S. during Trump’s term, and Korean Air confirming a US$36 billion order for 103 Boeing aircraft.

The two governments also agreed on steps to promote reciprocal trade, including the removal of non-tariff barriers, streamlined automotive rules and commitments to prevent discrimination against U.S. digital service providers.

On October 30, Trump said that South Korea can build a nuclear-powered submarine. 

"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," the president wrote on Truth Social during a multiday visit to South Korea.

He stated that South Korea has agreed to pay the U.S. $350 billion, invest in American industries, and purchase U.S. oil and gas in return for reduced U.S. tariffs on South Korean imports. A similar agreement was proposed by Trump over the summer, which included a 15% tariff on South Korean goods.

By Aghakazim Guliyev