Finalization of 5th Defense Cost Negotiations... US "Towards a Shared Goal" (Comprehensive)

Han: "Conducting intensive and in-depth discussions"
US: "Discussions reflecting the will and strength of the alliance"

The fifth round of negotiations on the defense cost-sharing agreement, which determines South Korea's share of the costs for the stationing of U.S. Forces Korea, has concluded.

According to the Ministry of Foreign Affairs on the 12th, the fifth meeting for the conclusion of the 12th Special Measures Agreement (SMA) on defense cost-sharing ended on the same day. A ministry official stated, "Based on the previous four rounds of consultations, more focused and in-depth discussions were held on key issues of mutual interest," adding, "South Korea and the United States plan to continue holding consultations on the 12th SMA as needed."

This meeting was held over three days starting from the 10th at the Korea National Defense University Seoul Campus. On the South Korean side, Lee Tae-woo, the Ministry of Foreign Affairs' chief negotiator for defense cost-sharing, participated as the lead representative, while on the U.S. side, Linda Speck, Senior Advisor at the U.S. Department of State, served as the chief representative. Diplomatic and defense officials from both countries were also present.

In a statement released through the U.S. Embassy in Korea after the meeting, Senior Advisor Linda Speck said, "The U.S. and South Korean delegations have continued to review each other's proposals," adding, "We are moving forward toward our shared goal of a mutually acceptable agreement that supports our joint security." She continued, "These discussions are part of a strong combined defense posture that protects the peace and prosperity of the peoples of Korea and the United States, reflecting our commitment to and the enduring strength of the ROK-U.S. alliance," and expressed hope that "consultations will resume soon."

Previously, the two sides held the first to third rounds of meetings on April 23-25 in Honolulu, Hawaii; May 21-23 in Seoul; and June 10-12 in Washington D.C., respectively, confirming their basic positions and exchanging views on points of interest and issues. South Korea has set "a reasonable level of contribution" as its negotiation standard, while the United States emphasizes "the necessity of contributions to maintain defense posture."

Notably, since the third meeting, the intervals between negotiation sessions have noticeably shortened. In diplomatic circles, there is analysis that consensus on key issues such as the scale of contributions and criteria for rate increases is approaching. It is reported that both sides aim to complete related consultations before the U.S. presidential election in November. The validity period of the 11th SMA has 1 year and 8 months remaining.

On the morning of the 10th, the 5th meeting for the conclusion of the 12th Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States was held at the Korea National Defense University Seoul Campus in Yongsan-gu, Seoul.
[Photo by Ministry of Foreign Affairs]

The SMA is an agreement that stipulates the amount South Korea will bear for the stationing costs of U.S. Forces Korea. South Korea's contributions cover wages for Korean workers employed by the U.S. Forces Korea, construction costs for military facilities within U.S. bases, ammunition management, transportation support, and procurement of supplies.

In March 2021, South Korea and the United States reached an agreement on the 11th SMA, valid until the end of 2025. At that time, the defense cost-sharing amount for 2021 was agreed upon at 1.1833 trillion won, a 13.9% increase from the previous year (1.0389 trillion won), with plans to raise it annually over four years in line with the previous year's defense budget growth rate.

The results of the 12th SMA negotiation meetings will apply starting in 2026.