'US-ROK Defense Ministers Also Talk on "Defense Cost Sharing"... Differences Resurface'

Esper Reiterates US Position on "Fair and Inclusive Agreement"
Minister Jeong Requests "Priority Payment of Part of Korean Workers' Labor Costs"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The 11th Special Measures Agreement (SMA) negotiations on defense cost-sharing between South Korea and the United States, once expected to be close to a breakthrough, are now stalled before reaching the final hurdle. Despite both countries’ foreign ministers and defense ministers stepping in, the gap over the increase in defense costs that South Korea must bear appears to be widening. The unpaid leave imposed by the U.S. side on Korean workers employed by the U.S. Forces Korea has entered its seventh day.

According to the Ministry of National Defense on the 7th, Defense Minister Jeong Kyeong-doo reportedly requested U.S. Secretary of Defense Mark Esper during a phone call to accept a plan to prioritize partial payment of wages for Korean workers. The call between the defense ministers took place at the request of the U.S. side the previous day.

A Ministry of National Defense official stated, "We requested that the U.S. government accept a plan to prioritize partial payment of wages to Korean workers employed by the U.S. Forces Korea even before the SMA negotiations are finalized." Minister Jeong is also said to have emphasized during this phone consultation that resolving the unpaid leave of Korean workers at U.S. military bases should be the top priority amid delays in concluding the negotiations.

In response, Secretary Esper tweeted on the 6th (local time) about the call, reiterating the U.S. position by saying, "It is extremely important to promptly sign a fair and balanced comprehensive agreement." Although South Korea and the U.S. have continued high-level talks with both foreign and defense ministers involved, the discussions have so far only confirmed the differing timelines for a final agreement.

[Image source=Yonhap News]

The South Korea-U.S. defense cost-sharing negotiations are delayed, unable to clear the final hurdle toward an agreement. On the 31st of last month, Jeong Eun-bo, the chief negotiator for the South Korea-U.S. defense cost-sharing talks, stated that the negotiations were in the final coordination stage, and on the 1st, a senior government official mentioned the possibility of a final agreement, raising expectations that the talks, ongoing since September last year, could be concluded. However, the anticipated announcement of a deal has yet to materialize.

Conversely, the U.S. side has made remarks that lower expectations for a final agreement. On the 2nd (local time), Clark Cooper, U.S. State Department Deputy Assistant Secretary for Political-Military Affairs, said during a virtual press briefing, "The South Korea-U.S. defense cost-sharing negotiations are by no means over," adding, "If an agreement is reached, it must be mutually beneficial and fair."

On the same day, a State Department official unusually emailed Korean correspondents in Washington, stating, "Negotiations with South Korea are ongoing," and added, "(Former President Donald) Trump has clearly expected all global allies, including South Korea, to contribute more and do more, and we will continue to discuss a mutually beneficial and fair agreement with South Korea."

The South Korean government also shifted from an optimistic stance of being in the "final coordination stage" to a position that "consultations are ongoing, but no agreement has been reached yet." While progress is evident, difficulties in finalizing the talks remain. Although there were forecasts within and outside the government that a deal was imminent, no announcement has been made so far.

[Image source=Yonhap News]

Contrary to expectations, as the final negotiations face difficulties, the unpaid leave imposed by the U.S. side on Korean workers employed by the U.S. Forces Korea has entered its seventh day. The longer the negotiations are delayed, the more the livelihoods of Korean workers are threatened.

Accordingly, the government plans to complete a draft special law to support Korean workers within this week. A Ministry of National Defense official explained, "We will enact the special law as soon as possible through close consultations with the National Assembly," adding, "We plan to pursue measures to support the workers’ living expenses using government funds."