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US asks ROK to pay half of USFK bill

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By Kang Seung-woo
  • Published Jul 4, 2013 5:59 pm KST
  • Updated Jul 4, 2013 5:59 pm KST

By Kang Seung-woo

The United States has called for Korea to shoulder what it estimates to be half of the costs of stationing 28,500 troops on the Korean Peninsula. Currently, Seoul pays for 42 percent.

But South Korea said the U.S. underestimates its burden-sharing portion, so the talks on how much each nation will pay for the operation of the U.S. Forces Korea (USFK) remains to be seen.

The initial discussions for the Special Measures Agreement (SMA) pitted Hwang Joon-kook, Seoul’s top negotiator, against his U.S. counterpart Eric John for three days until Thursday in Washington.

The U.S. side demanded Korea expand its financial burden up to 50 percent, citing its current budgetary challenges and North Korea’s increased military threats. The SMA is to supplement the Status of Forces Agreement (SOFA) which governs the legal status of U.S. troops in Korea.

The latest five-year SMA regarding Korea’s cost-sharing support for the USFK, signed in 2008, is scheduled to expire at the end of this year, so the two sides are seeking to reach a new agreement that will cover the coming years from 2014 to 2018 by October, given the time needed for domestic procedures, including parliamentary approval. The next round of discussions will be held in Seoul in late July.

Since 1991, Korea has partially shared the costs of stationing U.S. troops here under the SMA for Korean civilians hired by the USFK; the construction of military facilities to maintain the allies’ readiness; the combined defense improvement project; and other logistical support. Seoul has increased its level of financial assistance in accordance with the rise in the consumer price index.

It provided the United States with 836 billion won ($733 million) last year, with its current cost-sharing ratio staying at 42 percent.

The U.S. request comes as its mandatory budget cuts, from March, are beginning to affect the U.S. Defense Department, resulting in slashes of billions of dollars.

The Senate Armed Services Committee said in April that Korea’s contributions to cover the cost of stationing American troops were not keeping up with the growth in U.S. costs.

However, some Korean civic groups claim Seoul is paying as much as 65 percent of the total cost of maintaining the USFK.

“The negotiations are like a zero-sum game, but the two sides reached an agreement to come up with a conclusion based on a ROK-U.S. alliance,” a Korean official said.

Determining an appropriate level for Korea’s share has been a complex and controversial challenge.

Some South Koreans point to the significance of the alliance as an effective counter to possible attacks from North Korea, while others contend the United States keeps its troops on the peninsula due primarily to its own strategic interests.