By Jung Sung-ki
Staff Reporter
South Korea and the United States signed an agreement on defense cost-sharing for maintaining U.S. troops in South Korea for the next five years, the Ministry of Foreign Affairs and Trade said Thursday.
The signing took place between Foreign Minister Yu Myung-hwan and U.S. Ambassador to South Korea Kathleen Stephens at the ministry in Seoul, it said.
Gen. Walter Sharp, chief of the U.S. Forces Korea (USFK), also attended the meeting.
Under the deal sealed late last year, South Korea is to provide about 760 billion won to the USFK this year. Seoul will increase its share each year in line with the consumer price index but annual hikes will be capped at 4 percent.
The agreement also allows the USFK to use part of the host-nation funds to relocate its infantry units stationed north of Seoul to south of the Han River.
Under the deal, South Korea will help construct U.S. military facilities instead of providing cash under the deal in a bid to help ensure transparency in the U.S. use of South Korean taxpayers' money
The host-nation funds cover U.S. Forces Korea's non-personnel stationing costs, which include the salaries of Korean employees on bases, logistics procurement and maintenance and military construction.
Under the pact, Seoul will construct 30 percent of U.S. facilities this year and the ratio will increase to 60 percent in 2010 and 100 percent in 2011.
For example, if the United States asks Korea to construct facilities, the two sides are to conduct a feasibility study. Once agreed upon, the United States will be in charge of construction, design and supervision, while South Korea will manage a related contract with local firms and overall construction.
The agreement is awaiting approval from President Lee Myung-bak and the National Assembly before taking effect.