Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
S. Korea urged to renew defense cost sharing contract each year
By Lee Min-hyung
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U.S. President Donald Trump
By Lee Min-hyung
The ongoing defense cost sharing negotiations between Seoul and Washington have been brought back to square one, as the United States urges South Korea to renew the contract each year from the current five-year accord.
The U.S. suggested the one-year renewal plan for defense cost sharing with South Korea during their recent dialogue in mid-December, according to diplomatic circles here. The South is known to have flatly rejected the suggestion, as this will pose a bigger financial burden on Seoul.
Starting this March, both sides have engaged in the talks to renew the five-year contract, or the Special Measures Agreement (SMA), which expires at the end of this year. But no breakthroughs have been made in the dialogue, as both sides continue failing to narrow their differences on such points as the total amount of money each side has to cover and the contract's renewal term.
The deadlock in the negotiation comes against the backdrop of U.S. President Donald Trump's hard-line stance on defense cost sharing. Since taking office last year, Trump stepped up his criticism of U.S. allies for what he calls “taking total advantage” of the U.S. by paying less for defense cost sharing.
The South's Ministry of National Defense declined to reveal its stance over the intensifying pressure from the U.S.
“It is not proper for us to comment on the issue, as the defense cost sharing dialogue is still underway between Seoul and Washington,” an official from the ministry said Friday. The ministry will share details upon finishing the dialogue, and the two countries will continue narrowing their differences over the agenda to generate an outcome satisfactory for both parties, according to the official.
The Ministry of Foreign Affairs is the competent authority in charge of the ongoing SMA, but it also did not share its official stance or any planned countermeasures over the growing pressure from the U.S. The ministry only said it will continue negotiating with the U.S. through diplomatic channels.
Seoul paid 960.2 billion won ($853.3 million) for this year's defense cost sharing. But the U.S. has intensified pressure on the South to sharply increase the burden. On Wednesday, Trump indirectly reiterated his complaints over the agenda during his surprise visit to American troops in Iraq.
“America should not be doing the fighting for every nation on Earth, not being reimbursed in many cases at all,” he said. “If they want us to do the fighting, they also have to pay a price.”
The latest defense cost sharing dialogue took place for three days from Dec. 11 in Seoul. But as Seoul and Washington fail to reach a consensus in details on sharing the burden, chances have become slim for them to come an agreement by the end of this year.
The ongoing dialogue centers on who should shoulder of the upkeep costs for the 28,500 United States Forces Korea (USFK) troops here.
Aside from the USFK maintenance costs, Trump also expressed strong discomfort toward the annual Seoul-Washington joint military exercises, saying South Korea does not “pay properly” for the drills.
“We have done exercises with South Korea for a long time. The amount of money we spend on that is incredible. South Korea contributes, but not 100 percent. We actually have a new deal with South Korea,” Trump said in a press conference after his historic summit with North Korean leader Kim Jong-un this June.
It remains unknown how much the U.S. demanded the South increase its share of burden, but according to U.S. local reports, Washington is known to be urging Seoul to double its share of the burden.