NSC discusses defense cost issue

Defense Minister Jeong Kyeong-doo responds to questions from lawmakers during a National Assembly audit at the ministry's headquarters in Yongsan, downtown Seoul, Friday. Yonhap

By Kim Yoo-chul

The National Security Council (NSC) held a meeting Friday to specifically discuss the issue of any increase in Seoul's contribution towards the maintenance of the United States Forces Korea (USFK), according to Cheong Wa Dae.

“National Security Office chief Chung Eui-yong presided over an NSC meeting Friday morning. The meeting covered what progress has taken place in the Seoul-Washington defense cost-sharing talks. NSC members also discussed possible measures and necessary procedural steps South Korea should use in the second round of the cost-sharing negotiations,” the presidential office said in a statement.

Cheong Wa Dae said the second round of talks will take place in the United States, later this month. Under the current one-year Special Measures Agreement (SMA) set to expire Dec. 31, the government agreed to pay 1.04 trillion won for 2019 toward the cost of maintaining 28,500 US troops here. This was an increase of 8.2 percent from 960 billion won Seoul paid in 2018.

A few hours after the NSC meeting, Defense Minister Jeong Kyeong-doo told lawmakers at the ministry's headquarters in downtown Seoul that South Korea was seeking to find a “middle ground” benefiting both Seoul and Washington in the defense cost-sharing talks, while admitting that “an increase was necessary.”

“What I believe is that both Washington and Seoul have to view the defense cost-sharing matter in terms of strengthening the alliance between the two countries on the security front,” Jeong said during a National Assembly audit.

The SMA will have to be ratified by the Assembly, although presidential office and ministry officials expressed confidence that it would be approved.

Regarding claims by a ruling Democratic Party of Korea (DPK) lawmaker that Washington demanded Seoul pay a whopping $5 billion for next year, Jeong said the exact amount has yet to be finalized.

The deepening dispute over the cost-sharing issue is becoming uglier at a sensitive time with regard to diplomacy aimed at pressurizing North Korea to dismantle its nuclear program. Working-level talks between their respective negotiators held in Stockholm produced no tangible results as the North refused to accept an offer of “low-level” sanctions relief from the United States in return for presenting a comprehensive detailed plan on its denuclearization.

North Korea tested an advanced submarine-launched ballistic missile (SLBM) before the talks, which some observers claim was a means to gain extra leverage in the nuclear disarmament negotiations. Since 1991, under the SMA the government has paid for South Korean civilians hired by the USFK, the construction of military facilities to maintain the allies' readiness and other forms of support.

U.S. President Donald Trump reaffirmed his commitment to bring U.S. soldiers back from overseas, claiming “rich countries” will have to pay the full cost of deployments there. Trump didn't directly mention South Korea, however, he referred to Saudi Arabia's decision to pay more for its defense in the wake of recent drone attacks.

In addition to the traditional defense cost-sharing, South Korea is also included under the U.S. “nuclear umbrella,” and has paid about $800 million annually of the total non-personnel costs of the USFK, according to an analysis by the Congressional Research Service.

On a related note, Germany, one of the U.S.' key allies, said it was willing to contribute more to NATO's running costs as long as other allies also step up to help reduce Washington's share of the funding.

Along with South Korea, Trump has long accused Washington's European allies including Germany, the biggest economy in Europe, of receiving U.S. security guarantees for a “small payment.”

“We are ready to provide more money, as long as it is the same contribution as the United States,” German Defense Minister Kramp-Karrenbauer told reporters during a trip to Latvia to meet NATO soldiers there, according to reports.