Korea braces for defense cost-sharing pressure following US-Japan talks

Choi Sang-mok, left, deputy prime minister and minister of economy and finance, and Ahn Duk-geun, minister of trade, industry and energy, depart from Seoul Air Base in Seongnam, Gyeonggi Province, Nov. 14, 2024, to attend the APEC summit in Peru and the G20 summit in Brazil. Newsis

U.S. President Donald Trump's pressure on Japan for a bundled deal combining trade and security signals that Korea, which will begin its own negotiations with the U.S. next week, may face similar demands on defense cost-sharing and nontariff barriers.

Concerns are rising that the U.S.-Japan talks in Washington on Wednesday (local time) could be a preview of scheduled meetings on tariff issues between Korean officials, including Economy and Finance Minister Choi Sang-mok and Trade, Industry and Energy Minister Ahn Duk-geun, and their U.S. counterparts.

During a 50-minute meeting with Japanese Economic Revitalization Minister Ryosei Akazawa, Trump reportedly raised the issue of defense spending contributions, signaling his intent to link economic and security matters in a single negotiation framework. While Japan focused on reducing steep tariffs on steel and cars, Trump’s comments suggested that support for U.S. troops stationed abroad was also part of the discussion.

Following the meeting, Trump revived his preferred phrase, “one-stop shopping” — a concept he had also referenced in a recent phone call with Korea’s acting President Han Duck-soo. In that call, Trump proposed addressing trade, industrial cooperation and defense costs as a package, rather than in separate negotiations.

Japan's Economic Revitalization Minister Ryosei Akazawa, the country's envoy for tariff talks with the U.S., answers questions from reporters in Washington, D.C., Wednesday. AFP-Yonhap

Korea, in contrast, has traditionally preferred to separate trade and security matters, including sharing the costs for stationing 28,500 United States Forces Korea (USFK) troops here.

Korean officials are proceeding cautiously.

Speaking before the National Assembly on Tuesday, Choi said Korea was not yet in a position to make firm commitments and confirmed that defense cost-sharing was not currently part of the negotiation agenda.

“We don’t yet know what exactly the U.S. government wants,” Choi told lawmakers. “At this stage, we’re preparing to engage with responsible U.S. officials on issues such as LNG, shipbuilding and trade balance. We’ll first identify their priorities and determine how we might structure the talks.”

Analysts say this cautious approach could benefit Korea. Seok Byoung-hoon, an economics professor at Ewha Womans University, noted that being the first to present negotiation terms often comes at a cost.

“The first country to put terms on the table risks setting the baseline, which others can then exploit,” Seok said. “That’s why the side that rushes often ends up making more concessions than necessary.”

U.S. President Donald Trump attends a prayer service and dinner at the White House in Washington, D.C., Wednesday, ahead of Easter Sunday. Reuters-Yonhap

The stakes are high for Korea, which currently faces a 25 percent reciprocal tariff — one point higher than Japan’s. With Washington granting most countries a 90-day window to reach trade agreements, the pressure on Seoul to act swiftly is mounting.

Officials familiar with the talks say Tokyo remains wary of creating a precedent that links defense contributions to trade outcomes. While Japanese officials have voiced frustration over U.S. tariffs, they have refrained from escalating tensions. Analysts suggest Japan is seeking to register its concerns without undermining broader ties with Washington.