South Korea and U.S. Begin Defense Cost Sharing Negotiations in Hawaii

HONOLULU – South Korea and the United States are set to commence their initial round of negotiations this week in Honolulu, Hawaii, regarding the financial contributions Seoul will make towards the maintenance of U.S. troops on its soil. This marks the beginning of what could be complex discussions as both nations seek to determine the extent of Seoul's responsibility in financing the presence of the 28,500 U.S. Forces Korea (USFK).

According to Yonhap News Agency, the talks, which run from Tuesday through Thursday, will be the first interaction between the newly appointed chief negotiators, Lee Tae-woo from South Korea and Linda Specht from the United States. The early initiation of these discussions is reportedly driven by the allies’ desire to establish a framework ahead of potential political changes in the U.S. that could influence the negotiation dynamics, particularly in light of the former U.S. President Donald Trump's previous hardline stance during his administration.

During Trump’s tenure, the cost-sharing arrangement known as the Special Measures Agreement (SMA) became a contentious issue, with Trump advocating for a significant increase in South Korea’s financial contributions to US$5 billion, a fivefold jump from previous levels. However, under the most recent SMA, South Korea consented to a 13.9 percent increase, bringing its contribution to $1.03 billion for 2021. This agreement is scheduled to expire at the end of 2025.

Since 1991, South Korea has shared costs with the U.S. for various needs, including the salaries of Korean workers in USFK, construction of military facilities, and logistical support. The upcoming discussions aim to balance these financial commitments with the strategic security benefits derived from the U.S. military presence.

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