From nuclear submarines to trade, South Korea and US remain deadlocked ahead of talks

South Korea and the United States are heading into talks in Seoul next week with different priorities over the implementation of last year’s summit agreement, with President Lee Jae Myung pushing for the supply of nuclear-powered submarines and Washington seeking progress on a major investment pledge by the Lee administration.US approval on the use of nuclear fuel for South Korea’s submarines is a key goal for Lee, while Washington wants Seoul’s US$350 billion investment promise it previously made in return for a lower tariff rate to be high up on the agenda, according to analysts.President Donald Trump has said the submarines should be manufactured at shipyards in Philadelphia, backed by the South Korean conglomerate Hanwha. However, Lee has insisted that South Korea should be responsible for building the submarines.