US Nuclear Deal with Saudi Arabia Freezes South Korean Reactor Ambitions

The United States has signed a nuclear deal with Saudi Arabia that could have far-reaching implications for the global reactor market. The agreement, which covers reactor construction, technology transfers, and non-proliferation safeguards, prioritizes American companies for future contracts. This development is a significant blow to South Korea's KEPCO, which had been positioning itself to win major nuclear export contracts, including in Saudi Arabia.

The deal was finalized around July 22, 2026, with President Trump giving his approval. One of the most contentious aspects of the agreement is its provision for uranium enrichment on Saudi soil, pending a joint feasibility study. This move has raised eyebrows in Seoul, where officials are pointing to what they see as a double standard.

The Abraham Accords clause ties final approval to Saudi Arabia's normalization of relations with Israel under the framework of this diplomatic initiative. If this part stalls, the entire deal could stall with it. The agreement is significant not just for its commercial implications but also for how it reflects Washington's willingness to use the nuclear trade as a geopolitical lever.

The exclusion of foreign competitors, including South Korea's KEPCO, from future contracts in Saudi Arabia sends a clear signal that US nuclear cooperation agreements may increasingly come bundled with buy-American conditions. This shift has broader implications for allies and partners looking to collaborate with Washington on nuclear projects.