Last-Minute Fluctuations in ROK-US Defense Cost-Sharing Talks That Produced a 'Tentative Agreement'... "High-Level Consultations Failed to Reach Consensus"

Late-stage variables seem to have caused setbacks... Early resolution hopes fade
South Korea's negotiation progress still valid... U.S. State Department "Negotiations with South Korea are ongoing"

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The negotiations between South Korea and the United States to conclude the 11th Special Measures Agreement (SMA) on defense cost-sharing, which seemed to be rapidly progressing toward an agreement, are now facing last-minute setbacks without reaching a final deal. The defense cost-sharing talks, which were reported to have reached a tentative agreement among working-level negotiators after narrowing differences that had grown since last weekend, appear to have encountered unexpected variables in the final stage.

On the 2nd, a Ministry of Foreign Affairs official stated, "High-level consultations on defense cost-sharing negotiations have continued, but no agreement has been reached yet," adding, "We will continue discussions to reach an early conclusion." Despite direct involvement from the foreign ministers of both countries, no final decision has been made. According to government and diplomatic sources, as of the 1st, the defense cost-sharing negotiations, which had failed to narrow differences despite seven face-to-face meetings and several virtual talks since last September, seemed to be moving toward a resolution after about seven months.

The main point of the reported tentative agreement was to reduce the increase in defense cost-sharing from the $4 billion level initially demanded by the U.S. side to around "10% plus alpha," and to extend the negotiation cycle from one year to five years. The U.S. had originally demanded about $5 billion, approximately six times the previous year's contribution from South Korea. Additionally, the U.S. reportedly dropped its demand to add a "readiness posture" item, which was not included in the existing SMA framework that covers Korean labor costs for U.S. Forces Korea.

Regarding the negotiation process, after a phone call between the South Korean and U.S. presidents on the 24th of last month, the previously stalled talks began to show progress, significantly narrowing the gap between the two sides. Jeong Eun-bo, South Korea's chief negotiator for the defense cost-sharing talks, also indicated a shift in the negotiation atmosphere on the afternoon of the 31st, stating, "The unpaid leave measure for Korean workers at U.S. Forces Korea does not appropriately reflect the situation between the two countries," and that "we are in the final coordination stage for reaching an agreement."

The atmosphere, which had been buoyed by expectations of a deal, changed within a day. After the tentative agreement news was reported, a senior Blue House official said, "It seems true that there has been progress, but negotiations are still ongoing," followed by the U.S. State Department's response that talks with South Korea are continuing and that discussions will be held to reach a fair agreement beneficial to both sides. Furthermore, the Blue House announced that at the National Security Council (NSC) meeting chaired by National Security Advisor Chung Eui-yong that day, standing members reviewed the status of the defense cost-sharing negotiations and agreed to continue efforts for an early resolution.

However, there is growing consensus that the defense cost-sharing talks, which had begun to show progress, have not returned to square one. Considering that as recently as the 25th of last month, the U.S. State Department spokesperson emphasized the need to properly reflect the contributions of American taxpayers and noted significant differences remain between the two countries, requiring flexibility from South Korea, it is analyzed that the negotiations have been making recent progress. NBC News cited two officials reporting that on the morning of the 31st (Eastern Time), Secretary of State Mike Pompeo and Secretary of Defense Mark Esper visited the White House to prevent the unpaid leave situation of Korean workers at U.S. Forces Korea.

Amid intense focus on every move by the U.S. side, the unprecedented unpaid leave situation for Korean workers at U.S. Forces Korea, which began on the 1st, is likely to continue for the time being. Although the possibility of a dramatic agreement has not completely disappeared, the delay in announcement compared to expectations suggests that more time may be required for the final negotiation process. Approximately 4,000 of the 8,600 Korean workers at U.S. Forces Korea, nearly half, are reported to have entered unpaid leave.

The government expressed regret over the enforcement of unpaid leave on Korean workers at U.S. Forces Korea and announced plans to pursue support measures. Ministry of National Defense spokesperson Choi Hyun-soo said, "We plan to enact a special law as soon as possible through close consultation with the National Assembly to support the livelihoods of the workers using our government budget."

[Image source=Yonhap News]

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