Bahk Eun-ji has been with The Korea Times since 2012, building a career across multiple desks. She began at the Business Desk, where she conducted in-depth interviews with key figures in Korea's corporate world. Later, she moved to the Politics & City Desk, focusing on education policy and social affairs. She later served as team leader of the digital content team, leading curation efforts on the newspaper’s homepage and reshaping print stories for social media audiences to enhance digital reach. Now back on the Politics Desk, she covers the National Assembly and the Ministry of National Defense, with a renewed focus on political developments.
Korea pushes for 'package deal' of trade, security in talks with US
National Security Adviser Wi Sung-lac briefs reporters on the outcome of his meeting with U.S. officials at the presidential office in Yongsan District, Seoul, Wednesday. Yonhap
By Bahk Eun-ji
Trump ramps up pressure on Korea with demand on defense cost sharing
The Korean government has called on the United States to discuss trade and security issues as a “package” in the ongoing tariff talks, with the possibility of a bilateral summit also being considered, according to National Security Adviser Wi Sung-lac, Wednesday.
Wi’s remarks came a day after the Donald Trump administration sent a letter to Korea to notify that it would impose 25 percent “reciprocal” tariffs on Aug. 1. The next day, Trump also called on Korea to increase its share for upkeep of U.S. troops here.
Wi said Trump’s letter was focused on tariff and nontariff trade barriers.
“But our suggestion comprehensively includes trade, investment, purchase and security, so we proposed that these matters be considered as a package in negotiations,” said Wi, who returned home Wednesday evening after visiting Washington to meet his counterpart, U.S. National Security Advisor and Secretary of State Marco Rubio, and other officials from the Trump government. “Rubio expressed understanding on this proposal.”
Wi said his meeting with Rubio took place shortly after Trump had sent tariff letters to 14 countries, including Korea. He explained that Seoul emphasized the importance of advancing talks within the broader framework of trust between alliances and mutual benefit.
The two sides also discussed the possibility of holding a summit between President Lee Jae Myung and Trump as soon as possible, with the aim of “promoting mutually beneficial solutions” to all pending issues.
“We agreed to maintain close communication regarding the Korea-U.S. alliance and shared challenges,” Wi said.
He declined to comment on specific negotiation timelines or recent reports of U.S. dissatisfaction with the pace of defense and agricultural talks. He said only that “all possibilities are being reviewed” and that the government is seeking to “minimize or avert” the impact of the proposed tariffs through ongoing negotiations.
When asked about defense cost sharing, Wi clarified that the government had already committed to 1.52 trillion won ($1.17 billion) next year under the 12th Special Measures Agreement (SMA), which is separate from its broader military expenditure. “Our contributions are already substantial and are growing in line with international trends,” he said.
U.S. President Donald Trump, right, speaks as Secretary of State Marco Rubio looks on during a meeting in the Cabinet Room of the White House in Washington, D.C., Tuesday (local time). AFP-Yonhap
Wi's comment on defense cost sharing came as Trump escalated pressure on Korea by pairing tariff threats with renewed demands for increased defense contributions.
At a Cabinet meeting on Tuesday (local time), Trump criticized Korea’s defense cost contributions as inadequate given its economic standing.
“We rebuilt South Korea. We stayed there. It’s OK. We rebuilt it. And they pay us very little for the military,” he said.
“They should be paying for their military,” he added, citing the East Asian country’s economic strength.
Trump also referred to his previous negotiations regarding defense cost sharing during his first term. "I said for South Korea as an example, you know, we give you free military, essentially very little, and I think you should pay us $10 billion a year."
He did not say specifically how much he wants Korea's contribution for the upkeep of the U.S. Forces Korea (USFK) to increase this time. But if he again proposes $10 billion, the figure would mark nearly a nine-fold increase from Korea’s contribution of 1.52 trillion won, set for 2026 as outlined in the 12th SMA that is to be applied from 2026 through 2030.
In response to the possibility that the Trump administration may seek to renegotiate the SMA, Korea’s Defense Minister nominee Ahn Gyu-back said, “To my knowledge, the U.S. side has not officially requested a renegotiation of the defense cost-sharing agreement.” He added that the 12th SMA must be upheld to ensure the stable stationing of USFK and the maintenance of the combined defense posture.
White House press secretary Karoline Leavitt holds a letter from U.S. President Donald Trump addressed to President Lee Jae Myung about reciprocal tariffs as she speaks during a daily briefing in the Brady Briefing Room of the White House in Washington, D.C., Monday (local time). AFP-Yonhap
Regarding the Trump administration’s push for allies to spend 5 percent of their GDP on defense, Ahn said, “National defense expenditure should be determined by a comprehensive review of both the domestic and international security environments, as well as our fiscal conditions.”
The Ministry of Foreign Affairs in Seoul also offered a measured response. “It is inappropriate to respond to or assess every statement made by foreign leaders,” a ministry official said.
The ministry added that the SMA plays a crucial role in supporting the stable presence of USFK and in strengthening the combined defense posture. It also reaffirmed Korea’s commitment to fully implementing the 12th SMA.
Trump’s comments come amid broader pressure from the U.S. on allies to increase defense spending. The Pentagon has recently suggested that Asian allies, including Korea, should aim to spend 5 percent of their GDP on defense as part of a global strategy to counter China’s growing military assertiveness. Korea currently spends about 2.3 percent of its GDP on defense.
Korea was recently named alongside Japan as a top target of the U.S.' new reciprocal tariff measures. This dual-track pressure has raised concerns in Seoul that defense and trade are being linked as part of a broader negotiating strategy.
“Trump is trying to combine defense and trade in one comprehensive package," said Park Won-gon, a professor of North Korean studies at Ewha Womans University. "He is using maximum leverage to pressure Korea into making concessions before any summit takes place.”
“If the 25 percent reciprocal tariff takes effect on Aug. 1, we will inevitably feel pressured to reach a deal within the remaining period,” said Kim Soo-dong, head of the global competitiveness strategy division at the Korea Institute for Industrial Economics and Trade.
“It’s unclear how much can be agreed upon, but to reach a deal, we may have to concede slightly more — and, in doing so, secure as much as possible in return.”