By Kang Seung-woo
South Korea and the United States failed Thursday to narrow differences on how to share the cost of funding the U.S. Forces Korea (USFK).
In the second round of talks in Seoul, called the Special Measures Agreement (SMA) meeting, the U.S. government demanded that Korea expand its financial burden to more than 1 trillion won ($895 million) to reach a 50-50 share, according to sources familiar with details of the deal. Korea stuck to about 889 billion won.
The SMA is to supplement the Status of Forces Agreement (SOFA) which governs the legal status of U.S. troops in Korea.
They agreed to hold a meeting again in August in the United States.
The U.S. claimed that Seoul needs to share a greater burden because U.S. troops should strengthen its military readiness in the wake of growing threats from North Korea.
Korea contributed 869.5 billion won for this year, which accounts for about 42 percent, based on the U.S. assessment.
In addition, according to a report by the Senate Armed Services Committee in April, Korea-funded contributions of $707 million in 2011 and $765 million in 2012, accounting for 40 and 41 percent, respectively, compared with those from the U.S. side.
However, Korea said that direct and indirect costs provided for the USFK are considerable and any increase of the contribution should be limited to last year’s inflation rate of 2.2 percent.
Korea claims that it provides police and the Korean Augmentation to the United States Army (KATUSA), worth around $42 million.
Besides the troop support, it provides land for bases and firing ranges for free along with exemptions from taxation and benefits including cheaper electricity and reduced telephone charges.
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.
Therefore, 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.
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 a rise in the consumer price index.