U.S. and South Korea Reach ‘In Principle’ Agreement on Troop Cost Sharing, Says State Department – Reuters

Washington (Reuters) – The United States and South Korea have come to an "in principle" agreement on cost-sharing for the stationing of U.S. troops in South Korea, according to the State Department on Monday.

A State Department spokesperson confirmed, "The United States and the Republic of Korea have reached an agreement in principle on a new Special Measures Agreement. Both sides are committed to resolving remaining technical issues as swiftly as possible."

Reports indicate that under the updated agreement, South Korea is expected to increase its financial contribution to nearly $1 billion. The previous deal, which lapsed last year, had required South Korea to contribute approximately 960 billion won (around $848 million) annually for the presence of about 28,500 American troops in the country. Despite ten rounds of negotiations since March, the allies struggled to finalize a renewal of the agreement.

U.S. President Donald Trump has consistently emphasized that South Korea should shoulder a greater share of the costs associated with U.S. military presence, which has been in place since the Korean War from 1950 to 1953.

A diplomatic source in Seoul indicated that Washington was likely to agree to South Korea’s request for a contribution of just under $1 billion for 2019, with the new agreement set to last for one year instead of the previous five-year term.

The two countries are anticipated to finalize the deal soon, as efforts are focused on diplomatic negotiations with North Korea ahead of a scheduled summit later this month.

South Korean officials have expressed a desire to keep their contribution around 1 trillion won (approximately $891 million) while seeking a longer agreement of at least three years. However, tensions in negotiations arose when the U.S. reportedly made a surprising demand for South Korea to pay over 1.4 trillion won (about $1.25 billion) annually.

Approximately 70% of South Korea’s contribution goes toward the salaries of around 8,700 South Korean employees who provide various services for the U.S. military.

The U.S. military has warned Korean staff at its bases that they could face leave starting in mid-April if an agreement is not reached.

In June, Trump announced a suspension of joint military exercises with South Korea following his first meeting with North Korean leader Kim Jong Un, citing the high costs primarily borne by the U.S. While major exercises have been paused to facilitate negotiations concerning North Korea’s nuclear program, some smaller drills have continued.