Tag: Cost Sharing

This demonstrates how concerned the ROK was of Trump winning the election that they have prioritized getting this cost sharing agreement signed before the election:

South Korea and the United States formally signed a defense cost-sharing agreement Monday, as Seoul seeks to speed up its domestic ratification procedure to ensure the stable stationing of American troops here ahead of the U.S. elections.

The signing came a month after the allies reached a new five-year deal on determining Seoul’s share of its cost for the upkeep of the 28,500-strong U.S. Forces Korea (USFK).

Foreign Minister Cho Tae-yul and U.S. Ambassador to South Korea Philip Goldberg signed the deal, known as the Special Measures Agreement (SMA), at the foreign ministry in Seoul, officials said.

Under the 12th SMA, which will last until 2030, South Korea will pay 1.52 trillion won (US$1.19 billion) in 2026, up 8.3 percent from 1.4 trillion won in 2025.

Yonhap

You can read more at the link.

I sure hope the US negotiators are using a possible Trump presidency as leverage during these negotiations:

A U.S. delegation for defense cost sharing talks with South Korea arrives at the Korea Institute for Defense Analyses in Seoul to hold a three-day fourth round of negotiations on June 25, 2024. (Yonhap)

Seoul and Washington launched the negotiations in April to renew the cost-sharing deal, known as the Special Measures Agreement (SMA), amid the view that South Korea is seeking an early deal to avoid tough bargaining in case former U.S. President Donald Trump returns to the White House. 

Under Trump’s presidency, Washington had demanded more than a fivefold increase in Seoul’s payment to US$5 billion. 

The current six-year SMA, due to expire at the end of next year, committed South Korea to paying $1.03 billion for 2021, a 13.9 percent increase from 2019, and increasing the payment every year for the subsequent four years in line with the rise in Seoul’s defense spending. 

South Korea has said it seeks to have negotiations based on the position that its share should come at a “reasonable level,” to create an environment for the stable stationing of the U.S. Forces Korea (USFK) and to strengthen the allies’ combined defense posture.

Yonhap

You can read more at the link.

The ROK government has been wanting to get a new US-ROK cost sharing agreement in place before the U.S. presidential election. This is because they know the potential acrimony that could happen if Donald Trump is elected President and they have to negotiate a new agreement with his administration:

This photo, captured from the State Department’s website, shows Linda Specht, a senior adviser and lead negotiator for security agreements at the department.

South Korea and the United States outlined their respective visions for a new bilateral defense cost-sharing deal during their first round of negotiations in Honolulu this week, the top U.S. negotiator said Friday.

Linda Specht, senior advisor and U.S. lead negotiator for security agreements at the State Department, made the remarks after the initial round of talks over the deal, named the Special Measures Agreement (SMA) took place from Tuesday through Thursday.

The talks are aimed at determining how much Seoul should pay for the stationing of U.S. Forces Korea. The current six-year SMA is set to end at the end of next year.

“The United States and Republic of Korea outlined their respective visions for the 12th SMA,” she said in a statement. She did not elaborate on the visions.

“Our commitment to reinforcing the readiness of our combined defense posture underlines the enduring vitality of the U.S.-ROK alliance. We will continue to consult whenever necessary to further strengthen and sustain the Alliance under the 12th SMA,” she added.

Shortly before the talks, Specht said that the U.S. seeks a “fair” and “equitable” outcome in the SMA talks.

Yonhap

You can read more at the link.

This is probably a smart move by the ROK to complete cost sharing negotations before any potential of Donald Trump being elected President. During his prior presidency he put enormous pressure on the ROK to pay more for the upkeep of USFK:

Korea and the United States have agreed to begin talks on their next deal on defense cost sharing earlier than planned, sources said, Jan. 16. Yonhap

Korea and the United States have agreed to begin talks on their next deal on defense cost sharing earlier than planned, sources said Tuesday, a move that appears to consider the possible reelection of former U.S. President Donald Trump, known for his tough bargaining on such deals.

The allies have reached an understanding to start the negotiations on sharing the costs for the upkeep of the 28,500-strong U.S. Forces Korea (USFK), this year, according to diplomatic sources familiar with the matter.

The early talks, if launched, will come nearly two years ahead of the original schedule for the deal, known as the Special Measures Agreement (SMA), currently in effect until the end of 2025 under a six-year term.

Seoul and Washington signed the SMA for 2020-26 in April 2021 after 1 1/2 years of tough haggling over how much Seoul should pay for the stationing of the USFK on its soil, as the then Trump administration had called for a sharp increase in Seoul’s share.

The early launch of the defense cost-sharing talks appear to have taken into account the possibility of Trump returning to the White House if he wins the November presidential vote.

During his term in office, Trump accused the allies of relying on the U.S. for their defense and called them “free riders” who “rip off” America. Some media had reported that Trump demanded Seoul pay $5 billion for its share, more than a fivefold increase from 2019.

Korea Times

You can read more at the link.

This claim has long been hinted by Trump himself due to the cost sharing issue with South Korea. Trump wanted the ROK to pay more for USFK which the Moon administration declined to do. The media now is trying to sell this as a new story when it is actually an old one:

Mark Esper, the former secretary of Defense under President Trump, says that the former president proposed a number of “outlandish” foreign policy proposals while he was in the White House, including pulling troops out of South Korea and shutting down embassies in Africa, according to an excerpt from Esper’s upcoming memoir.

In a new excerpt, shared by Politico, Esper wrote that shortly after he was hired to be the new Pentagon chief in 2019, Trump was railing against NATO and corruption in Ukraine, two personal issues that the rest of the national security and foreign policy team tried to tamp down because they weren’t considered leading concerns at the time.

Trump also said he wanted a “complete withdrawal” of forces from South Korea and that he wished to “bring our people home” from embassies in Africa, according to Esper.

The Hill

You can read more at the link.

The long negotiated USFK Cost Sharing Agreement has been implemented:

South Korea will spend nearly $125 million more this year to station American troops on the peninsula, according to a new cost-sharing deal that took effect Wednesday.

The Special Measures Agreement between South Korea and the United States determines the cost split for keeping roughly 28,500 U.S. troops in the country and employing South Korean civilians on U.S. military bases.

Seoul is expected to contribute $1.02 billion for 2021, a 13.9% increase to the $896.62 million it spent the previous year. The renewed agreement will retroactively apply to South Korea’s contribution from last year, which was carried over from 2019 after negotiations for the agreement’s renewal became deadlocked during President Donald Trump’s administration.

Stars & Stripes

You can read more at the link.

Like I said before signing a new cost sharing deal would be a simple win for the Biden administration. The reported 13% rise allows the administration to say they were able to get the ROK to pay more when the Trump administration with their hardline tactics could not:

The United States and South Korea are just weeks away from coming together on a new cost-sharing deal for stationing 28,500 U.S. troops on the peninsula, CNN reported Wednesday.

The report, which cited five anonymous sources familiar with the discussions, said the contract taking shape is a multiyear deal that increases Seoul’s contribution by about 13%.

Stars & Stripes

You can read more at the link.

This shouldn’t be surprising news to anyone following the US-ROK cost sharing negotiations:

The Pentagon has offered the White House options to reduce American troop levels in South Korea, the Wall Street Journal reported Friday.

Citing unnamed U.S. officials, the paper said the options were presented in March following a broader review of options for withdrawing troops from around the world, including in the Middle East, Africa, Europe and Asia.

The White House requested the review last fall, and by December, the Pentagon had come up with broad ideas, it said.

No decision has yet been made to reduce the number of U.S. forces stationed in South Korea from the current 28,500, according to the WSJ.

Yonhap

You can read more at link, but President Trump has already reduced U.S. troop levels in Germany over cost sharing issues and he has been having the same monetary disagreements with South Korea. This report I suspect was leaked to the Wall Street Journal in order to pressure the Korean side that Trump is serious about USFK troop withdrawals.

However, this all may be playing out as Korean President Moon Jae-in wants it to play out. Moon is a very skilled politician that needs to keep the Korean right at bay and public anxiety down.  If he openly advocated for a USFK withdrawal, that would give the South Korean right an issue to strongly attack him with and cause much public anxiety after decades of security guarantees provided by US forces.  

This is why President Moon has been saying all the right things that USFK should remain, to include claiming Kim Jong-un understands this as well. However, if troop withdrawals do happen he has political cover to not be blamed for it by claiming President Trump’s monetary demands were unreasonable which is a position likely a majority of Koreans believe.

Of all the excerpts given to the media there is hardly anything new he is disclosing because it has been widely reported President Trump has threatened to pull out USFK if South Korea does pay more for US-ROK cost sharing:

 U.S. President Donald Trump threatened to pull American troops from South Korea if Seoul did not pay US$5 billion under a defense cost-sharing deal, his former National Security Adviser John Bolton said in his memoir.

In “The Room Where It Happened,” set to be published Tuesday, Bolton recalled an Afghanistan-related meeting that took place last August ahead of the start of Special Measures Agreement negotiations between South Korea and the United States.

“Get out of there if we don’t get the five billion-dollar deal (for South Korean support of U.S. bases),” Trump was quoted as saying. “We lose $38 billion in trade in Korea. Let’s get out.”

Trump’s initial demand for $5 billion has been widely reported as the two countries remain deadlocked over how much Seoul should pay for the upkeep of 28,500 American troops stationed on the peninsula.

Yonhap

Here is something new that hasn’t been heard before, that President Trump allegedly call Kim Jong-un a “psycho”:

At the meeting, Trump also called the “war games” with South Korea a “big mistake,” referring to the allies’ combined military exercises.

“You shouldn’t have let them go on,” Bolton quoted Trump as telling him. “I’m trying to make peace with a psycho,” he added of North Korean leader Kim Jong-un.

You can read more at the link.