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.

South Korea was planning to launch its first nuclear-powered submarine by the middle of the 2030s, officials said on Tuesday. It is reportedly looking to build submarines with a displacement of 8,000 tonnes, similar to the US Virginia-class submarines.

The US also wants South Korea to play a more active role in countering China’s growing influence as part of its Indo-Pacific strategy.

The two sides also remain far apart on whether South Korea could deter North Korea on its own, a prerequisite for it to take full wartime operational control (OPCON) for its military from the South Korea-US Joint Forces Command, currently led by a US four-star general who oversees 28,500 American and South Korean troops.