S. Korea remains firm against US pressure for defense cost-sharing

Members of the USFK Korean Employees Union stage a protest in front of Camp Humphreys in Pyeongtaek, Gyeonggi Province, April 1, when nearly half of the Korean staff at U.S. military bases here were placed on unpaid leave in the absence of the defense cost-sharing deal. / Yonhap

By Kang Seung-woo

Seoul is standing firm against Washington's repeated pressure for a hefty increase in its share of the cost for the upkeep of the 28,500-strong United States Forces Korea (USFK) stationed here. Although the lack of deal has put thousands of Korean workers at U.S. military bases on unpaid leave, the government is not accepting the U.S. demand, but instead responding by setting up special laws to support the workers.

“Korea and the U.S. are still in negotiations over the defense cost-sharing deal and nothing has been officially decided yet,” the foreign ministry said in a statement Thursday.

Cheong Wa Dae also said that the allies were still in talks, adding that there was nothing new to reveal.

The government' statements came hours after U.S. President Donald Trump told Reuters that Korea would shoulder more of the cost, although he did not specify the amount.

“We can make a deal. They want to make a deal,” Trump was quoted as saying. “They've agreed to pay a lot of money. They're paying a lot more money than they did when I got here in January 2017.”

Since 1991, Korea has partially funded the U.S. troops' stay under the Special Measures Agreement (SMA) and the contributions are used to cover the wages of the 8,600 Korean workers as well as payment for construction projects and logistical support.

The two sides have held seven rounds of talks ― between September 2019 and March 20 ― to renew the SMA for 2020, but the government has refused to accept Trump's demand for a sharp increase in this year's payment. The U.S. president wants Korea to pay $4 billion a year, around quadruple the amount paid for last year, while the government has proposed an increase of around 10 percent.

Diplomatic experts said Trump's remarks were made as part of efforts to put pressure on Korea.

“I think he suggested that Korea pay more of the cost as Korea has offered an increase in the negotiations,” said Park Won-gon, a professor of international politics at Handong Global University.

Late last month, Trump urged the Korean government to pay more for the USFK, saying he had rejected Korea's offer of a 13 percent increase from the previous cost-sharing accord.

Park predicted that the SMA talks may be protracted.

“So far, the government has shown no signs of making a fresh proposal to the U.S. In addition, the two heads of state have made it clear that there will be no bargaining from their respective positions. So there is little room for negotiation, which could be a political burden,” he said.

Last week, a local media outlet reported, citing multiple government officials, that President Moon Jae-in had repeatedly said the 13-percent increase was Korea's best offer.

Amid the stalled SMA negotiations, the National Assembly passed a bill for a special law, Wednesday, paving the way for the government to pay the wages of furloughed Korean workers in advance.

Starting April, 4,000 out of 8,600 Korean staff were placed on unpaid leave for an indefinite period.

Under the special law, the government will provide relief funds to support the livelihoods of the affected Korean workers if their wages are not paid due to the delay in the SMA negotiations.

According to the defense ministry, each person will receive a payment ranging from 1.8 million won ($1,490) to 1.98 million won per month, about 70 percent of their salaries, a similar allowance for jobseekers under employment insurance programs. This will require a monthly budget of 7.5 billion won.

The government plans to pay the money first and then deduct the amount from its due payment to the U.S. under the SMA framework to be agreed on later. Last month, the government informed the U.S. of this plan but is still waiting for a response.

During the seven rounds of talks, the government suggested that the allies conclude a deal on personnel expenditure first, but the U.S. rejected the proposal, saying such a partial agreement could distract from reaching a comprehensive SMA.