'Defense Cost-Sharing Negotiations' Reached, Blue House Positive Evaluation... Emphasis on ROK-US Alliance and Employment Stability (Comprehensive)

청, Evaluation of Defense Cost-Sharing Negotiations Reflecting the Purpose of the ROK-US Alliance... "US North Korea Policy Reflects Consultations with Korea"

[Asia Economy Reporter Ryu Jeong-min] "I came to share some good news regarding the ROK-US alliance." A Blue House official visited the press center on the afternoon of the 10th and emphasized the significance of the news about the conclusion of the Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States.

The agreement between the two countries sets this year's defense cost-sharing amount for the US Forces Korea at 1.1833 trillion KRW, a 13.9% increase from last year, and stipulates that the amount will be raised annually over the next four years in accordance with the defense budget increase rate. This agreement will be applied for six years, from 2020 to 2025.

Regarding the significance of reflecting the defense budget increase rate, the Blue House stated, "Since the defense budget is finalized through deliberation with the consent of the National Assembly, it ensures stability," and added, "We judged it to be a clear, verifiable, and reliable reasonable standard."

The view of the Blue House from Namsan, Seoul. Photo by Hyunmin Kim kimhyun81@

Although the 13.9% increase in this year's defense cost-sharing amount is considerable, the Blue House gave a positive evaluation. A Blue House official explained, "While 13.9% seems high this year, it should be noted that last year the increase rate was zero percent," and added, "We maintained our principles during negotiations, which resulted in a zero increase last year."

The key focus for the Blue House is the ROK-US alliance and the employment stability of Korean workers. Additionally, the Blue House highlighted the significance of defending against the Trump administration's attempt to increase the defense cost burden by introducing a new category called 'readiness posture.'

The defense cost-sharing categories will remain as before: labor costs, military construction costs, and logistics support costs. A Blue House official explained, "More than 90% of the defense cost-sharing amount typically flows back into the domestic economy," adding, "Labor costs are paid entirely in Korean won, 88% of military construction costs are paid to Korean companies, and logistics support costs are also paid entirely to Korean companies."

A Blue House official said, "Even if there is a gap in the defense cost-sharing agreement, a special law has been enacted to formalize the regulation that labor costs from the previous year are prepaid, enabling livelihood support in cases of unpaid leave," and evaluated, "Although the previous US administration exerted continuous and excessive pressure for increases, our government responded persistently based on principles and reached an agreement on this reasonable cost-sharing amount."

The Blue House attributed symbolic significance to this defense cost-sharing agreement as representing the ROK-US alliance. They emphasized the importance of concluding the agreement shortly after the Biden administration took office. In particular, a Blue House official stressed that diplomatic consultation channels between South Korea and the US are operating smoothly, stating

"There will not be a single day without contact between South Korea and the US."

The Blue House also conveyed that the results of consultations with South Korea will be reflected in the US's North Korea policy preparation process. A Blue House official explained, "We have communicated our position to the US regarding the resolution methods and timing of the North Korean nuclear issue, and it seems that a North Korea policy reflecting consultations with South Korea will be reviewed."

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