When Defense Cost Agreement Fails, Labor Cost Negotiations Can Proceed First

Defense Minister Jeong Kyeong-doo is delivering opening remarks at the 2019 Year-end All-Army Senior Commanders Meeting held on the 4th at the Ministry of National Defense in Yongsan-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Yang Nak-gyu Reporter] Our government appears to be separately pursuing discussions on the salaries of Korean workers employed by the US Forces Korea (USFK) if the Special Measures Agreement (SMA) on defense cost-sharing between Korea and the US is not concluded. This seems to be a card presented by our government amid increasing pressure from the US ahead of the SMA agreement.

On the 24th (local time), after a meeting with US Secretary of Defense Mark Esper at the US Department of Defense headquarters, Defense Minister Jeong Kyeong-doo said at a press conference, "I mentioned that if there is a budget for the USFK, we would support it, and if not, I spoke about the possibility of conditionally resolving the labor costs first from the defense cost-sharing budget allocated at last year's level and proceeding accordingly." He added, "I requested that such matters be promptly discussed between Korea and the US." This was in response to a question regarding the notification that Korean employees of the USFK could be placed on unpaid leave starting April 1 if the defense cost-sharing negotiations are not concluded.

The USFK had already notified on the 29th of last month that if negotiations are not concluded, Korean workers could be temporarily placed on unpaid leave starting April 1. USFK Commander Robert Abrams said on the 24th, "If unpaid leave for Korean employees begins, it will have ripple effects beyond negative impacts on military operations and readiness." The US Department of Defense reiterated its position a day before the Korea-US defense ministers' meeting that "unpaid leave for Korean workers employed by the USFK" is inevitable. This is a blatant pressure tactic indicating that if Korea does not increase its defense cost-sharing, salaries will not be paid and worker leave will be enforced.

In response, Minister Jeong said, "As the Korean Minister of Defense, I believe that stable conditions for the USFK's stationing must be guaranteed and that the combined defense posture in Korea must be firmly maintained. There must never be any factors that undermine such stability."

He also clearly stated that there is a significant difference in views between Korea and the US regarding the SMA. Minister Jeong said, "It is clear that there is still a difference in perception compared to the substantial increase demanded by the US," but added, "Currently, negotiations are not proceeding tentatively, but even if there are differences in perception in these areas, I believe it is important to meet frequently to narrow these gaps, and I hope that SMA negotiations can resume as soon as possible."

The Ministry of National Defense issued a press release on the same day stating, "Both ministers recognized that more proactive efforts are needed to resolve the differences in positions between Korea and the US regarding the new agreement in the current SMA negotiations."