Eyes on possible changes in US demands in talks regarding South Korean defense costs

South Korean ambassador to the cost-sharing talks Chang Won-sam (left) and US Statement Department representative Timothy Betts engage in dialogue during the fourth meeting regarding the 10th Special Measures Agreement on defense cost-sharing on June 26 at the Korean National Diplomatic Academy (KNDA) in Seoul’s Seocho District. (Yonhap News)

Observers waiting to see if new political atmosphere on Korean Peninsula affects US position

South Korean and US representatives at a fourth meeting in Seoul on June 26 for the two sides’ 10th Special Measures Agreement on defense cost-sharing took note of the changing political situation on the Korean Peninsula. With two sides agreeing to postpone some of their joint military exercises in the wake of a June 15 North Korea-US summit in Singapore, observers are now watching to see what changes there are in the US’s demands to share costs for the deployment of strategic assets, which has emerged as a major issue during the talks.

“Many changes have recently been predicted for the Korean Peninsula’s security environment, and I think we all agree on the importance of reaching a harmonious resolution to discussions on the sharing of defense costs to contribute to establishing conditions for the stable stationing of US Forces Korea, strengthening the allied defense system, and strengthening the South Korea-US alliance,” said Ministry of Foreign Affairs (MOFA) ambassador to the cost-sharing talks Chang Won-sam in introductory remarks for the meeting, which took place that morning at the Korean National Diplomatic Academy (KNDA) in Seoul’s Seocho District.

“I believe the two sides have sufficiently grasped and understood the other’s position over the course of the three previous meetings,” he added.

“I hope that this meeting will mark the beginning of real progress in a spirit of mutual understanding and respect,” he continued.

Despite three rounds of talks since March, the two sides have yet to bridge their differences on their respective total shares of defense costs to be applied as of 2019.

Speaking after Chang, the US State Department representative to the talks, Timothy Betts, began his remarks by saying that rapid changes in the Korean Peninsula situation were adding an element of excitement to hopes for the future.

South Korean and US representatives at the fourth meeting of the 10th Special Measures Agreement on defense cost-sharing on June 26 at the Korean National Diplomatic Academy (KNDA) in Seoul’s Seocho District. (Yonhap News)

Expressing hopes for a positive outcome with regard to the Korean Peninsula situation, which he described as a crucial element of the regional security environment, Betts also acknowledged the existence of other issues not included in the current discussions.

“Our [South Korea-US] alliance remains the linchpin of regional stability and security with the benefit of both our people and in a world where there's a lot of uncertainties,” he added.

“The Special Measures Agreement remains central to the health and vitality of the alliance. So the importance of our work doesn't change even if the situation around us does,” he continued, expressing his hope for “productive” discussions.

South Korea’s defense cost share represents the amount it pays toward USFK stationing costs, used among other things for personnel costs for South Korean workers hired by USFK, the construction of various facilities within US bases, and USFK ammunition storage and other logistical support expenses. But US representatives’ previous demand that South Korea also bear a portion of the costs for the deployment of US strategic assets on the peninsula has become a “hot potato” for the talks. The South Korean government has insisted that it cannot accept the US demands on the grounds that the defense cost sharing agreement specifically concerns USFK stationing costs.

With the Freedom Guardian joint exercise originally scheduled for August and the Korean Marine Exchange Program (KMEP) exercise from July and September being postponed in the wake of the North Korea-US summit, many are now watching to see what changes this will mean in the US’s stance. The meeting is scheduled to continue until June 27.

Meanwhile, members of Solidarity for Peace and Reunification of Korea (SPARK) and other civic groups held a press conference the same day in front of the KNDA meeting venue to demand an end to defense cost-sharing and voice opposition to South Korea picking up costs for deployment of strategic assets. Claiming that the South Korean government’s share of 6.3 trillion won (US$5.6 billion) for USFK stationing costs was six times higher than that of the US, the groups argued that the South’s share should be used for an inter-Korean peace fund instead.

By Kim Ji-eun, staff reporter

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