Trump "South Korea Agreed to Pay a Significant Amount"
Negotiations Not Finished but Major Increase Assumed

[Image source=EPA Yonhap News]

[Image source=EPA Yonhap News]

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[Asia Economy Reporter Lim Cheol-young] '13% vs 1.3 billion dollars.'


On the 7th (local time), U.S. President Donald Trump, who had rejected the '13% increase provisional agreement' that the South Korea-U.S. defense cost-sharing negotiation team had painstakingly reached, pressured South Korea with a sudden remark, "South Korea has agreed to pay a significant amount. I am very grateful." The South Korean government stated, "Negotiations are ongoing, and the results must be acceptable to both sides," but it clearly showed discomfort with the U.S.'s increasing pressure outside the negotiation table.


Moreover, a senior U.S. administration official has unusually and openly disclosed to the Korean media the '1.3 billion dollar increase demand.' Until mid-last month, the U.S. State Department and others refrained from specific comments while reaffirming their existing stance regarding the defense cost-sharing negotiations. After President Trump suddenly overturned the 13% increase plan provisionally agreed upon by the South Korea-U.S. negotiation team, the U.S. shifted its position by counter-proposing 1.3 billion dollars (approximately 1.592 trillion won), which is more than a 50% increase compared to last year. A senior U.S. administration official declared this amount as the "final offer," taking a firm stance. The official expressed dissatisfaction, saying, "We have lowered our demand too much from the original 5 billion dollars to 1.3 billion dollars. The South Korean government has done nothing."


Statements urging the South Korean government's 'flexibility' have also continued. On the 27th of last month, a U.S. State Department spokesperson emphasized, "The U.S. view is that South Korea should contribute more," adding, "The U.S. has shown considerable flexibility in recent weeks to reach an acceptable agreement." The spokesperson also expressed hope for further compromise from the South Korean government. On the 5th, Mark Naeper, U.S. Assistant Secretary of State for East Asian and Pacific Affairs, also stressed the need for flexibility from the South Korean government to support the conclusion of the negotiations. Additionally, on the same day, James Anderson, the U.S. Department of Defense nominee for Deputy Assistant Secretary for Policy, submitted written answers at his Senate confirmation hearing stating, "We are asking South Korea to bear a larger and fairer share of the costs in maintaining peace and security in an evolving strategic environment."


There is also speculation that the U.S. is trying to take the lead in negotiations based on President Trump's statement that "South Korea has agreed." Trump has mentioned in his book, The Art of the Deal, the tactic of "pressuring the other party by publicly stating that they agree with your position before entering negotiations." Analysts interpret this as Trump beginning to employ his characteristic negotiation technique to gain an advantage in the deadlocked talks. With the November presidential election approaching, he also needs achievements in significantly increasing defense costs from allies following South Korea.


Despite the U.S.'s relentless offensive demanding a large increase, the South Korean government is unlikely to accept the new U.S. proposal. This is because they believe that merely adjusting the increase rate contained in the provisional agreement will only lead to a repetition of the same situation. Foreign Minister Kang Kyung-wha, appearing at the National Assembly Foreign Affairs and Unification Committee plenary session on the 28th of last month, firmly stated, "That amount (13% increase) is the highest possible level for us," reflecting the same stance.



Due to the significant difference from the South Korean government's position, which considers a 13% increase compared to last year, it is expected to be difficult to achieve dramatic progress in the negotiations. Even in the South Korea-U.S. foreign ministers' phone call arranged at the request of U.S. Secretary of State Mike Pompeo on the 6th, the defense cost-sharing issue was mentioned only at a routine level confirming the intention for a swift resolution. Consequently, the unpaid leave of about 4,000 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 livelihood passed the National Assembly plenary session on the 29th of last month, but the unstable situation is expected to persist until the negotiations are concluded.


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

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