US officials considered demanding Korea raise defense spending to 3.8% of GDP in tariff talks: report

U.S. President Donald Trump attends a signing ceremony in the State Dining Room of the White House in Washington, DC, USA, Aug. 8. EPA-Yonhap

Officials of U.S. President Donald Trump's administration considered demanding that South Korea raise its defense spending to 3.8 percent of its gross domestic product (GDP) during tariff negotiations, a news report said Saturday, citing internal U.S. government documents.

U.S. officials also weighed the idea of requiring South Korea to publicly support operational flexibility of the U.S. Forces Korea (USFK) to better deter China, The Washington Post reported, though it is not clear whether their suggestions were actually discussed in the negotiations with South Korea that were concluded last month.

The documents indicated that the Trump's administration might intend to use tariffs to help achieve a range of national security goals beyond its stated objective to reduce America's trade deficits and boost domestic manufacturing, the newspaper noted.

"The U.S. also wanted Seoul to boost defense spending to 3.8 percent of GDP, up from 2.6 percent last year, and to increase its $1 billion-plus contribution to cover the annual costs of basing the roughly 28,500 U.S. troops in South Korea," the newspaper said.

It also cited an early draft of a "U.S.-Korea agreement," which suggested, "The South Korean government should be urged to endorse a change in the positioning of U.S. troops stationed there under the United States Forces Korea command."

Moreover, the document included a requirement that "Korea will issue a political statement supporting flexibility for USFK force posture to better deter China while continuing to deter (North Korea)."

A Seoul official denied that the U.S. had made such requests to South Korea during the recent tariff negotiations.

Still, the report suggests the Trump administration may have considered making such demands, as Trump had called for a "one-stop shopping" deal linking trade and security when he spoke with then South Korean acting President Han Duck-soo in early April. According to the newspaper, the documents were dated May 1.

While the U.S. has reportedly stressed the need for an increase in South Korea's defense spending and "strategic flexibility" for the USFK, there have been no concrete discussions on these issues, diplomatic sources here said.

It is more likely that such demands will emerge in future talks between the allies as part of broader discussions on the U.S. push for "modernization of the alliance," a concept that calls on South Korea to shoulder more of the defense burden and align with Washington's efforts to deter China.

Pressure has been building on Korea to boost its defense spending, as the Pentagon has said that Korea and other Asian allies are subject to the "global standard" of spending 5 percent of their GDP, amid expectations that Trump might demand a hefty rise in Seoul's share of the cost for stationing USFK.

South Korea's defense budget this year stands at around 61.2 trillion won ($44.2 billion), which is about 2.32 percent of its GDP, according to Seoul's defense ministry.

Speculation has also persisted that the Trump administration might seek greater strategic flexibility of American troops in South Korea, as the Pentagon seeks allies' greater "burden-sharing" and prioritizes deterring an increasingly assertive China.

Strategic flexibility is a hotly debated issue that resurfaced as Seoul and Washington are envisioning the "modernization" of their alliance. It refers to the use of U.S. troops in South Korea for a wider range of expeditionary operations, including roles for China-related contingencies — a move further away from their traditional dedication to deterring North Korean threats.

The issues of Korea's defense spending and the operational scope of USFK could be topics for the summit between South Korean President Lee Jae Myung and Trump, which is expected to take place later this month, as Seoul and Washington are working on shaping the summit agenda and other details.