South Korea is stepping up its diplomatic and economic game on the world stage, signaling a drive for greater strategic autonomy as global power dynamics shift and trade tensions simmer. On December 17, 2025, the country’s national security adviser, Wi Sung-lac, made headlines by revealing that South Korea may need to hammer out a separate bilateral accord with the United States to secure the right to build nuclear-powered submarines. This move, he suggested, would follow a precedent set by Australia, which successfully navigated a similar path just a few years ago.
Speaking to reporters after arriving in Washington, Wi Sung-lac was candid about the challenges and opportunities ahead. He was in the U.S. capital for high-level meetings with senior officials, including Secretary of State Marco Rubio, aiming to advance South Korea’s security interests at a time when regional threats and technological competition are never far from the headlines.
"Australia was able to obtain an exemption under Section 91 of the U.S. Atomic Energy Act through a standalone agreement with Washington," Wi pointed out, referencing Canberra’s landmark deal that paved the way for the 2021 Aukus accord among Australia, the U.S., and the U.K. That agreement granted Australia access to sensitive nuclear submarine technology, a privilege previously reserved for only the closest of American allies, according to South Korea’s Yonhap News Agency. By citing this precedent, Wi was making it clear that Seoul sees a viable path forward, albeit one that will require deft negotiation and careful diplomacy.
The stakes are high. For South Korea, acquiring nuclear-powered submarines is about more than just military hardware—it’s a statement of intent in a region where maritime security, deterrence, and technological prowess are increasingly intertwined. As North Korea continues its missile and nuclear programs, and as China expands its naval reach, Seoul is eager to strengthen its own capabilities. Yet, the legal and political hurdles are formidable. The U.S. Atomic Energy Act tightly controls the transfer of nuclear technology, and any exemption would require not only technical assurances but also trust at the highest levels of government.
Australia’s experience offers both hope and a roadmap. Back in 2021, Canberra’s pursuit of the Aukus agreement was driven by similar concerns about regional security and technological edge. The U.S. and U.K. agreed to share their nuclear submarine technology, but only after Australia secured a specific exemption under American law. As Wi Sung-lac noted, “Canberra had obtained an exemption under Section 91 of the U.S. Atomic Energy Act through a standalone agreement with Washington.” For South Korea, replicating this feat would mean navigating complex legal frameworks and convincing Washington that Seoul’s intentions are aligned with U.S. strategic interests.
While security dominates the headlines, South Korea is also working to shore up its economic foundations amid a turbulent global trade order. On the same day as Wi’s remarks, South Korea’s trade ministry announced a bold new initiative: the country aims to finalize negotiations in 2026 to upgrade the service-trade and investment provisions of its free-trade agreement with China. This is no small feat, considering the economic and geopolitical crosswinds buffeting the region.
According to a statement from the trade ministry, the goal is to conclude talks in 2026 as part of South Korea’s broader strategy to manage geopolitical and trade risks while securing greater strategic autonomy. The ministry emphasized that this approach is designed to help the country “manage geopolitical and trade risks and secure strategic autonomy amid a turbulent global trade order.” In other words, Seoul is hedging its bets, looking to deepen ties with its largest trading partner even as it seeks closer security cooperation with Washington.
This dual-track strategy reflects a broader trend among middle powers grappling with the uncertainties of a new era. On one hand, South Korea is doubling down on its alliance with the United States, seeking new forms of military cooperation and technology sharing. On the other, it is determined to maintain robust economic ties with China, which remains its largest export market and a key player in the regional supply chain.
The upcoming talks with China are expected to focus on upgrading the existing free-trade agreement, particularly in the areas of services and investment. Since the original deal was struck, both economies have evolved rapidly, with digital trade, e-commerce, and advanced manufacturing taking center stage. By modernizing the agreement, Seoul hopes to unlock new opportunities for its businesses while protecting itself from the vagaries of global trade disputes.
Yet, the road ahead is anything but smooth. Negotiations with China are notoriously complex, often involving protracted discussions over market access, regulatory standards, and dispute resolution mechanisms. Moreover, the geopolitical backdrop adds another layer of complexity. As the U.S. and China jostle for influence in the Asia-Pacific, South Korea finds itself walking a diplomatic tightrope, seeking to avoid alienating either side while advancing its own interests.
For policymakers in Seoul, the challenge is to balance these competing imperatives without overcommitting to one camp or the other. “The goal is to conclude negotiations in 2026 as part of South Korea’s strategy to manage geopolitical and trade risks and secure strategic autonomy amid a turbulent global trade order,” the trade ministry reiterated. That means staying nimble, keeping lines of communication open with both Washington and Beijing, and being ready to adapt as circumstances change.
Back in Washington, Wi Sung-lac’s meetings with Secretary of State Marco Rubio and other senior officials are likely to be closely watched by regional observers. The question on everyone’s mind: Will the U.S. be willing to grant South Korea the same kind of exemption it gave Australia? And if so, what conditions might be attached? While no decisions have been announced, the very fact that Seoul is pursuing this avenue signals a new level of ambition and confidence in its foreign policy.
At the same time, South Korea’s efforts to upgrade its trade relationship with China underscore the importance of economic resilience in an era of uncertainty. With global supply chains still recovering from the shocks of recent years, and with new regulatory challenges emerging in areas like data privacy, artificial intelligence, and green technology, staying ahead of the curve is more important than ever.
As South Korea navigates these choppy waters, the world will be watching. The country’s ability to secure advanced military technology from the U.S. while deepening economic ties with China could serve as a model for other nations seeking to chart an independent course in a multipolar world. For now, though, the hard work of negotiation—and the delicate art of balancing competing interests—lies ahead.
With both security and economic talks gathering steam, South Korea is making it clear that it intends to play a bigger role in shaping the future of the region. Whether these efforts will pay off remains to be seen, but one thing is certain: Seoul is no longer content to sit on the sidelines.