US “Achieving Fair and Balanced Defense Expenses… Emphasizing the Importance of the ROK-US Alliance” (Comprehensive)

An official at the US State Department said on the 10th (local time) that Korea made a meaningful contribution to the conclusion of the Korea-US defense share agreement, and evaluated it as a fair and balanced share.

In addition, President Joe Biden’s pledge to restore the alliance reflected the strengthening of the ROK-US alliance, and stated that the situation is different from that of Japan, which has virtually frozen US troops in Japan this year, and that it is not a target for comparison.

State Department officials said in a press briefing that took place over the phone that day, the settlement is the highest rate of share increase since 2004. “It is a great emphasis on the importance that both the United States and South Korea have placed on our alliance.”

The two countries agreed to raise Korea’s USFK defense cost share this year by 13.9% from last year, reflecting the annual increase in defense spending over the next four years. This is the highest since 25.7% of the 5th Agreement in 2002, which was the highest ever. In 2020, when the agreement was vacant, the contribution was frozen at the level in 2019.

The official estimates that the 6-year agreement, which will take effect from 2020, will total more than $7 billion, and said it was “an important and meaningful contribution from the Korean side.”

In addition, President Biden made it clear that the alliance was revitalized. “In terms of the spirit of this friendship and the seriousness of the challenges ahead, we have found a fair and balanced cost sharing.”

“Both sides recognize that our challenges today are really costly for security in a complex environment,” he said. “This was the spirit of our negotiations.”

This official said, “I don’t think it is appropriate to compare countries,” he said. Said it was very different.

Japan extended the terms of the previous agreement by one year in order to gain time to negotiate a multi-year agreement, which explains that it cannot be directly compared with Korea, which has reached a six-year multi-year agreement.

The official also explained that rather than negotiating the increase itself, it focused on the part that needed to be treated as a contribution of Korea, and that the focus was on the share of the burden of Korea’s total cost of staying in the past.

He explained that under the new agreement, South Korea’s contribution is about 44% of the USFK’s stationing costs, excluding American labor costs, which is consistent with the trend that has accounted for 40-45% in the past. It is argued that it is not an excessive increase in terms of the proportion of Korea’s contributions alone.

He also explained that a large portion of the contribution is used for labor costs for Korean workers.

Among the contributions in 2019, the proportion of labor costs was 48%, military construction costs 36%, and military support costs 16%.

The official replied, “I am focusing on this agreement, not the previous agreement,” and replied, “It seems to be a fair logic and principle.”

The official said, “We are particularly pleased that our most important alliance, South Korea, has achieved an important first milestone,” after recounting the Biden administration’s key to revitalizing the alliance and the challenges it faces.

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