US Department of Defense Accepts South Korea's Proposal on Labor Cost Burden for USFK Civilian Employees (Update)

Over 4,000 Unpaid Military Officials to Return Mid-Month
Korean Government to Bear $200 Million Cost

[Asia Economy Reporter Naju-seok] On the 2nd (local time), the U.S. Department of Defense announced that it has accepted a proposal for the South Korean government to bear the labor costs of Korean civilian employees of the U.S. Forces Korea (USFK) until the end of this year.

[Image source=Yonhap News]

Due to disagreements over the Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States, about 4,000 Korean civilian employees had been on unpaid leave. With this agreement, USFK civilian employees will be able to return to work by mid-month. The U.S. Department of Defense introduced that, as a result of this decision, the South Korean government will bear approximately $200 million (2.434 billion KRW) in labor costs for USFK civilian employees until the end of this year.

The U.S. Department of Defense stated, "This decision has made the burden of labor costs for Korean civilian employees of USFK more equitable," adding, "The United States will be able to maintain the combined defense posture, which is the alliance's top priority."

South Korea had previously requested priority payment of labor costs separately from the defense cost-sharing negotiations, but the United States had refused.

Meanwhile, the U.S. Department of Defense also pressured South Korea for a swift resolution regarding the defense cost-sharing agreement. Regarding the SMA, the Department said, "We believe that South Korea and the United States will each bear a fair burden that aligns with their best interests," and "We hope an agreement will be reached as soon as possible." It added, "If the SMA negotiations are not concluded, major defense-related infrastructure construction could be halted," warning that "this could jeopardize readiness in the mid- to long-term."

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