Ministry of National Defense Republic of Korea

Tenth Republic of Korea-U.S. Agreement reached on Sharing of Defense Costs;

Reflects an 8.2 percent increase in Republic of Korea’s annual defense budget
Review of the draft containing the details of the agreement

Government statement: “The agreement will contribute to strengthening the Republic of Korea-U.S. combined defense readiness” 
New agreement to take effect after parliamentary ratification in April     

   
The Republic of Korean government will pay 1038.9 billion won this year to cover the costs of stationing the U.S. Armed Forces Korea in Korea.

Chang Won-sam, who is Republic of Korea’s top negotiator on sharing defense costs with the U.S., met with his U.S. counterpart Timothy Betts at the Ministry of Foreign Affairs (MOFA) building in Doryeom-dong, Seoul at around 2:30 PM on February 10th to ink a provisional agreement on the sharing of defense costs.  

According to a statement from MOFA, “As allied countries that must work together based on mutual respect and trust, Republic of Korea and the U.S. have agreed to the ‘Special Measures Agreement (SMA)’ and a provisional contract after ten official meetings and close discussions and mediation via various diplomatic channels. The two countries have agreed that Republic of Korea will pay a total of 1038.9 billion won in defense costs throughout 2019.” 

The signed provisional agreement is expected to be submitted to the National Assembly in April after it has been examined by the Legislative Office, approved by Cabinet, and sanctioned by the leaders of both countries. It will come into effect after parliamentary ratification.  

The share of defense costs is the cost paid by the Republic of Korean government to cover the stationing of the U.S. Armed Forces in Korea. It includes labor costs for Republic of Korean workers employed by the Headquarters of U.S. Armed Forces in Korea, costs for construction in the U.S. Armed Forces base including lodgings, training camps, and educational facilities, and costs for munitions, such as equipment, transportation of goods and maintenance. Since 1991, Republic of Korea and the U.S. have signed the SMA on a two- to five-year basis. The most recent version, which was signed in 2014, expired at the end of December. 

In the tenth defense cost-sharing agreement, the two countries agreed that it is important to maintain a robust Republic of Korea-U.S. alliance, and necessary to ensure a stable stationing environment for U.S. Armed Forces in Korea. According to the MOFA, the U.S. reaffirmed that it will maintain its firm commitment to the defense of Republic of Korea and not consider any change to the size of stationing U.S. Armed Forces in Korea. While the U.S. highly appreciated Republic of Korea’s contribution to the alliance between the two sides, it called for a sharp increase in the sharing of defense costs, corresponding to the growth in Republic of Korea’s status and economic power. 

In this regard, the Republic of Korean government has continuously underscored five needs: ▲to enter into a new defense cost-sharing agreement to contribute to strengthening the Republic of Korea-U.S. alliance and combined defense readiness, ▲to decide our share at a reasonably fair level, ▲the U.S. government’s objective and positive evaluation of the Republic of Korea-U.S. alliance, ▲the transparent execution of the defense cost-sharing agreement and achievement of system improvements corresponding to our altered status and reciprocal alliance, and ▲to reach an agreement that can be fully accepted and supported by the Republic of Korean people and the National Assembly. Identifying these needs has led to significant system improvements to help the government rectify any problems that may occur in the process of executing the SMA, and enhance transparency and reliability in execution.  

A MOFA spokesperson said, “Unlike past reviews, Republic of Korea and the U.S. have comprehensively reviewed not only the SMA but also a draft containing the details of the agreement. The government has a plan to submit both the SMA and the provisional agreement, in order to achieve enhanced transparency for the National Assembly and the people.” These efforts have enabled an agreement to be reached that reflects an 8.2 percent rise in Republic of Korea’s annual defense budget.

By Byeong-No, Yun <trylover@dema.mil.kr >

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