First US-Korea Defense Cost-Sharing Negotiation Ends Amid Agreement Gap, Foreign Ministry Confirms Differences in Positions

[Asia Economy Reporter Lim Cheol-young] Negotiations for the conclusion of the 11th Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States, held in Washington DC amid an agreement gap, have ended. Since the 10th SMA expired at the end of last year, both countries hoped for a swift resolution, but the talks concluded with only a reaffirmation of their differing positions.

According to the Ministry of Foreign Affairs on the 16th, Jeong Eun-bo, South Korea’s chief negotiator for the defense cost-sharing talks, and James DeHart, the U.S. Department of State’s lead negotiator, concluded the sixth round of talks held over two days from the 15th to 16th (local time). Both the first and second day negotiations lasted six hours each.

Despite 12 hours of meetings over two days, the two sides appear to have failed to find any significant common ground. The U.S. side has demanded additional cost-sharing for the rotational deployment of U.S. forces in Korea and costs related to training outside the Korean Peninsula, on top of the existing defense cost-sharing items.

The Ministry of Foreign Affairs stated, "Our side has maintained the basic position that consultations should be conducted within the framework of the SMA, through which a reasonable and fair agreement should be reached," adding, "While both sides expanded mutual understanding and consensus, it was confirmed that differences in positions still remain."

Some reports indicate that various options are being considered, such as separating some of the additional U.S. demands from the existing SMA and reflecting them in South Korea’s defense budget, or recognizing South Korea’s participation in maritime security cooperation in the Middle East, such as dispatching troops to the Strait of Hormuz, as a contribution to the alliance.

The U.S. side has so far demanded adding costs for the rotational deployment of U.S. forces on the Korean Peninsula and training outside the region to the existing SMA items, which include wages for Korean employees of the U.S. Forces Korea, military construction costs, and logistics support costs. However, they have stepped back from their earlier demand to increase the contribution to $5 billion (approximately 5.83 trillion KRW), more than five times the current South Korean government contribution of 1.0389 trillion KRW.

In response, Ambassador Jeong Eun-bo told reporters at Dulles International Airport near Washington DC before the negotiations, "Our principle is that negotiations must be conducted within the existing SMA framework, and we have emphasized that indirect and direct contributions to the alliance should be fairly evaluated," adding, "Specific details such as which weapons to purchase are not matters to be discussed during the negotiation process."

The negotiation schedule has not been finalized since then. If the South Korean and U.S. negotiation teams fail to reach a conclusion by the end of March, the U.S. Forces Korea will be unable to pay wages to Korean workers employed by the U.S. forces in Korea starting in April.

The Ministry of Foreign Affairs explained, "We have agreed to closely consult to minimize the agreement gap through the prompt conclusion of a mutually acceptable agreement and to contribute to the ROK-U.S. alliance and combined defense posture."

This content was produced with the assistance of AI translation services.