Annual Agreement on USFK Burden Sharing Reaches 2.2 Trillion Won... 5% Increase from Previous Year

"Agreed on approximately 210 billion yen over the next 5 years"
"First increase of over 5% since 1999"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] It has been reported that the U.S. and Japanese governments have agreed to set the annual cost-sharing amount for U.S. forces stationed in Japan, borne by the Japanese side, at approximately 210 billion yen (about 2.19 trillion KRW) for the next five years starting from the 2022 fiscal year (April 2022 to March 2023). This represents an increase of about 5% compared to the previous year, marking the largest hike since 1999. As the U.S. demands increased military spending to strengthen its China containment strategy, the cost-sharing amount for U.S. forces in Japan is expected to continue rising.

According to Japan's Mainichi Shimbun on the 17th, the governments of Japan and the U.S. have reportedly reached a general agreement to set the annual cost-sharing amount for U.S. forces in Japan at around 210 billion yen for five years from the 2022 fiscal year through the 2026 fiscal year. Mainichi reported that the two countries plan to sign the new agreement at the upcoming foreign and defense ministers' (2+2) meeting scheduled to be held in the U.S. on the 7th of next month.

If the agreement is officially enacted, the cost-sharing amount for U.S. forces in Japan is expected to increase by about 5% compared to last year. The cost-sharing amount for the previous fiscal year was 201.7 billion yen, a 1.2% increase from the year before. According to Yomiuri Shimbun, this will be the first time since 1999, when the amount was increased by 8.6%, that the increase exceeds 5%. The average annual increase rate had been within 3% until now.

The two governments have signed special agreements on the cost-sharing amount for U.S. forces in Japan every five years, with the exception of the 2021 fiscal year, when they extended the existing agreement separately for one year at 201.7 billion yen.

The cost-sharing amount for U.S. forces in Japan has been steadily increasing since 2015. In particular, as the U.S. has strengthened its military containment of China, joint U.S.-Japan military exercises have increased, and the need for Japan to enhance its independent defense capabilities has grown, leading to an increase in the cost-sharing amount as well.

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