US-ROK Defense Cost-Sharing Negotiations Settle at 13% Level

[Asia Economy Reporter Yoo In-ho, New York=Correspondent Baek Jong-min] The Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States was virtually finalized 46 days after the inauguration of the Joe Biden administration.

The agreement on defense cost-sharing negotiations between the two countries, which had been delayed for over a year, is expected to further strengthen the South Korea-US alliance.

The Ministry of Foreign Affairs announced on the 8th through a press release, "As a result of the Korea-US meeting for the conclusion of the 11th SMA, a principled agreement was reached," and added, "Both sides plan to proceed with an external announcement and provisional signing after completing internal reporting procedures."

The Ministry emphasized, "The government will contribute to resolving the agreement gap that has lasted for over a year through the prompt conclusion of the agreement and to strengthening the Korea-US alliance and combined defense posture, which are the core pillars of peace and prosperity on the Korean Peninsula and in Northeast Asia."

Earlier, from the 5th to the 7th, Jeong Eun-bo, South Korea's SMA negotiator, and Donna Welton, the US Department of State's defense cost-sharing negotiation representative, held talks in Washington DC, USA.

The US Department of State also announced on the 7th (local time) that a principled agreement had been reached in the SMA negotiations. A State Department spokesperson responded to Asia Economy's inquiry about the SMA agreement by saying, "We are pleased that the Korea-US negotiation teams have agreed on the SMA, which strengthens the Korea-US alliance and joint defense."

They further emphasized, "We reaffirm that the Korea-US alliance is a core pillar of peace, security, and prosperity in Northeast Asia and the freely open Indo-Pacific region." This links the SMA to the US's Indo-Pacific strategy, which is aimed at countering China, and is interpreted as emphasizing the role of US Forces Korea amid ongoing considerations of global US troop redeployment.

The South Korean and US governments did not disclose detailed terms such as the rate of contribution increase. However, the State Department stated, "This agreement includes a meaningful increase in South Korea's contribution." In this regard, it is known that South Korea agreed to raise its defense cost-sharing payment by about 13% from the previous year's contribution (1.0389 trillion KRW) in 2020. The agreement is reported to be valid until 2026.

The official announcement of this agreement is expected to coincide with the visits of US Secretary of State Tony Blinken and Secretary of Defense Lloyd Austin to South Korea. Secretary Blinken and Secretary Austin are coordinating a visit to South Korea for one night and two days after visiting Japan from the 15th to the 17th.