South Korea and the U.S. to Begin 2nd 'Defense Cost-Sharing Talks' from the 21st... Tug of War Intensifies

Full-Scale Discussions Expected on the Scale and Criteria for Contribution Fees

The second meeting for defense cost-sharing negotiations between South Korea and the United States will be held in Seoul from the 21st to the 23rd. Intense negotiations are expected to begin over the share of costs South Korea will bear for the stationing of U.S. Forces Korea after 2026.

On the 16th, the Ministry of Foreign Affairs announced that the 12th Special Measures Agreement (SMA) meeting for defense cost-sharing between South Korea and the U.S. will be held in Seoul from the 21st to the 23rd. A ministry official stated, "The government plans to proceed with consultations under the position that South Korea’s defense cost-sharing should be conducted at a reasonable level to ensure stable conditions for the stationing of U.S. Forces Korea and to strengthen the combined defense posture between South Korea and the U.S."

Lee Tae-woo, Chief Negotiator for the Korea-US Special Measures Agreement (SMA) on Defense Cost-Sharing
[Photo by Yonhap News]

As in the first meeting, Lee Tae-woo, the South Korean chief negotiator for defense cost-sharing from the Ministry of Foreign Affairs, and Linda Specht, Senior Advisor from the U.S. Department of State, will attend as chief representatives for their respective sides.

The two sides held their first meeting from the 23rd to the 25th of last month in Honolulu, Hawaii, where they confirmed their basic positions. At the second meeting, held just a month later, a serious tug-of-war is expected over issues such as the scale of the cost-sharing and the criteria for its calculation.

The SMA is an agreement that defines the amount South Korea will bear for the stationing costs of U.S. Forces Korea. The 11th SMA, concluded in 2021, is valid until the end of 2025. According to the 11th SMA, the defense cost-sharing amount for 2021 was 1.1833 trillion won, a 13.9% increase from the previous year, and it was agreed to increase this amount annually over the next four years in line with the defense budget growth rate.

Meanwhile, the defense cost issue has emerged as a significant topic between the two countries ahead of the U.S. presidential election in November. Former U.S. President Donald Trump claimed during his campaign on the 11th (local time), "South Korea has taken many of America's industries," and "They are making enough money to pay for the U.S. troops stationed there." Trump, who has long argued that South Korea pays too little for defense costs relative to its economic power, has now added the argument of "U.S. industry plundering" to his previous "free-rider on security" theory. This is interpreted as pressure to increase South Korea’s defense cost-sharing amount.