US-ROK Defense Cost-Sharing 'Provisional Agreement' Officially Rejected by Trump... Negotiations Back to 'Square One'

"Excellent but Not Fair Relationship with Korea," Evaluation... Repeated Demands for Significant Increase
Defense Cost Talks Back to Square One... Regression to Unpredictable Phase
21st Day of Unpaid Leave for Korean Workers at USFK, Livelihood at Risk... Government Considering Support Measures

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] It has been revealed that U.S. President Donald Trump officially rejected the tentative agreement on a '13% increase in defense cost-sharing and a 5-year negotiation cycle,' which was painstakingly proposed by the working-level delegations of South Korea and the United States. As a result, the 11th Special Measures Agreement (SMA) negotiations on defense cost-sharing between South Korea and the U.S. have effectively returned to square one. With concerns becoming reality, the military readiness between the two countries and the livelihoods of Korean workers are expected to remain precarious indefinitely.

On the 20th (local time), President Trump firmly reiterated the U.S. stance demanding a 'significant increase' in South Korea's defense cost-sharing. During a regular briefing at the White House, he evaluated the relationship with South Korea as excellent but not fair, emphasizing, "We are asking to pay a big percentage of what we do."

With the final decision-maker, President Trump, officially rejecting the tentative agreement reached by both sides and reiterating his intention for a substantial increase, the defense cost-sharing negotiations have regressed into an unpredictable phase. Moreover, due to the COVID-19 pandemic and the upcoming U.S. presidential election, a swift resumption of negotiations is unlikely.

Some speculate that the defense cost-sharing talks may continue until the U.S. presidential election in November. As COVID-19 cases and deaths surge in the U.S., President Trump, who is seeking re-election, is under pressure. Therefore, it is analyzed that he is unlikely to abandon his campaign pledge of a 'significant increase in defense cost-sharing.' The outcome of these negotiations could also impact NATO and Japan's defense cost-sharing talks, posing another obstacle.

A senior official from the Ministry of Foreign Affairs stated, "Since the last situation (tentative agreement), we have not yet reached the stage of renewed consultations or negotiations," adding, "We expect to set the next negotiation schedule while maintaining communication." Although unusual signals were detected earlier this month, no schedule has been set since. Both sides have continued dialogue through non-face-to-face means since mid-last month after the 7th round of face-to-face talks.

Although the negotiations, which have dragged on for seven months since September last year, have again reached a deadlock, the South Korean government does not plan to present a new proposal immediately. Since the tentative agreement, approved by the working-level negotiation team and the foreign minister, has not been finalized, it is highly likely that similar situations will repeat unless the tentative agreement including a 'significant increase' is accepted. A Foreign Ministry official explained, "The defense cost-sharing negotiations between South Korea and the U.S. are still ongoing," adding, "Our government has negotiated under the principle of a reasonable and fair share and will continue to do so."

The unpaid leave of about 4,000 Korean workers employed by the U.S. Forces Korea, now entering its 21st day, is also unlikely to end soon. Since most of the Korean workers' salaries are borne by the U.S. side, a fundamental resolution is impossible without a negotiated agreement. Accordingly, the Ministry of National Defense and related agencies have announced plans to provide emergency support measures for Korean workers, but no significant progress has been made yet.

A government official said, "We are discussing support measures for Korean workers employed by the U.S. Forces Korea, centered on related ministries," adding, "Once the support plan is decided, the Ministry of National Defense is expected to announce the support measures."

[Image source=Yonhap News]