Five Months of Defense Cost-Sharing Agreement Gap, US Shifts 'Flexibility' Responsibility... Pressures for $1.3 Billion Payment

President Trump "South Korea Agreed to Pay Significant Amount" Confirmed
US Demands 50% Increase in Defense Cost-Sharing, Launches Relentless Offensive... Power Struggle Outside Negotiation Table with South Korea
White House Officials and US State Department Continue Pressure Statements

[Image source=AP Yonhap News]

[Asia Economy Reporter Lim Cheol-young] As the special agreement on defense cost-sharing (SMA) between South Korea and the United States enters its fifth month of deadlock, the U.S. continues to exert daily pressure on South Korea over the delayed negotiation settlement. Following U.S. President Donald Trump's repeated remarks that "South Korea has agreed to a significant increase," officials from the U.S. Department of Defense and the White House have been emphasizing the need for "greater contributions from South Korea," stressing the "flexibility" of negotiations and seemingly shifting responsibility. Recently, news has openly circulated that the U.S. proposed a revised "multi-year contract worth $1.3 billion (approximately 1.593 trillion KRW)," which is more than a 50% increase compared to last year’s 1.0389 trillion KRW, signaling that the power struggle outside the negotiation table with South Korea, which maintains a 13% increase, is expected to continue.

On the 7th (local time), President Trump, during a meeting with Texas Governor Greg Abbott at the White House, responded to reporters' questions by saying, "South Korea has agreed to pay a substantial amount," and added, "We are very grateful." This comment was made in the context of protecting very wealthy countries for free. On March 29, President Trump also made similar remarks in an interview with foreign media, stating, "South Korea has agreed to pay a lot of money."

Since President Trump rejected the tentative agreement reached by the South Korea-U.S. defense cost-sharing working group at the end of March, which proposed a 13% increase from last year and a five-year negotiation cycle, pressure outside the negotiation table has intensified. Senior officials from the White House and the U.S. Department of Defense have echoed President Trump's demands that South Korea "should contribute a higher percentage," urging daily changes from the South Korean side.

Since the end of last month, the tone of these remarks has shifted significantly. After the final settlement of the tentative agreement fell through, the U.S. emphasized that defense cost-sharing negotiations are still ongoing, but following the South Korea-U.S. high-level defense meeting on the 22nd of last month, the U.S. has been demanding more proactive changes from South Korea. Some speculate that after the U.S. requested a revised $1.3 billion, which is a 50% increase from last year, it has even demanded more than double, up to $2 billion.

The U.S. administration has particularly issued consecutive statements urging "flexibility from South Korea." On the 27th of last month (local time), a spokesperson for the U.S. State Department said, "The U.S. believes South Korea should contribute more," and emphasized, "The U.S. has shown considerable flexibility in recent weeks to reach an acceptable agreement." The spokesperson added that they hope for further compromise from the South Korean government. This is interpreted as pressure based on the fact that the originally requested defense cost-sharing amount of $5 billion has been lowered.

On the 5th (local time), Mark Naeper, U.S. Deputy Assistant Secretary of State for East Asia and the Pacific, also stressed the need for flexibility from the South Korean government in supporting the negotiation settlement. At a seminar hosted by the Center for Strategic and International Studies (CSIS), Deputy Assistant Secretary Naeper said, "We believe we have been flexible so far," and "We hope South Korea will also show flexibility." While avoiding specific comments on U.S. flexibility, the atmosphere is being created to justify a significant increase in defense costs. On the 7th (local time), written responses from James Anderson, the U.S. Department of Defense nominee for Deputy Assistant Secretary for Policy, at his Senate confirmation hearing stated, "We are asking South Korea to bear a larger and fairer share of costs to maintain peace and security in an evolving strategic environment."

Despite the U.S.'s relentless offensive demanding a substantial increase, the South Korean government is unlikely to accept the U.S.'s new proposals. This is based on the judgment that merely adjusting the increase rate contained in the tentative agreement would lead to a repetition of the same situation. On the 28th of last month, Foreign Minister Kang Kyung-wha appeared before the National Assembly Foreign Affairs and Unification Committee and firmly stated, "That amount is the highest possible level for us," reflecting the same stance. Following Foreign Ministry spokesperson Kim In-chul’s emphasis at a regular briefing that "the negotiation results must be acceptable to both sides," another Foreign Ministry official also responded, "We have also shown flexibility."

With the negotiation timeline uncertain, dramatic progress is unlikely. During a phone call between the South Korean and U.S. foreign ministers on the 6th, arranged at the request of U.S. Secretary of State Mike Pompeo, the defense cost-sharing issue was mentioned, but it reportedly remained at the usual level of confirming the intention for a swift settlement. Consequently, the unpaid leave of about 4,000 South Korean workers employed by the U.S. Forces Korea, which has lasted over a month, is likely to continue indefinitely. Fortunately, a special law supporting their livelihoods passed the National Assembly plenary session on the 29th of last month, but instability is expected to persist until the negotiations are concluded.

[Image source=Yonhap News]

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