South Korea, US push for timely renewal of troop cost agreement

As discussions heat up over the renewal of the Special Measures Agreement (SMA) between the US and South Korea, both nations are working towards a new deal that could be finalised before the end of the year.

Washington and Seoul are considering finalising a new cost-sharing agreement for US forces stationed in South Korea before the end of the year, despite the existing deal being valid until the end of 2025. This urgency stems from concerns about the potential return of a Trump administration, according to sources familiar with the negotiations, Caliber.Az reports, citing foreign media.

The Special Measures Agreement (SMA) has been a point of contention, particularly during the Trump administration when former President Donald Trump demanded a 400 per cent increase in South Korea's financial contribution for the 28,500 US troops stationed there. The SMA negotiations strained relations between the allies, highlighting the need for a timely resolution.

 Supporters emphasize that a strong US military presence on the Korean Peninsula is vital for deterring potential threats from North Korea, which continues to develop its nuclear arsenal. Additionally, it serves to enhance the US strategic position in the region amidst growing Chinese influence. Given the difficulties encountered during the previous round of negotiations, South Korean officials are keen to finalize the new deal swiftly. US officials are actively working with their South Korean counterparts, but there is concern that a quick resolution might draw criticism from Trump, potentially putting the alliance in a vulnerable position if he were to win the upcoming election. Under the current agreement, South Korea contributes approximately $1 billion annually, marking a 13.9 per cent increase from previous agreements.

The most recent round of talks concluded in late August, with discussions continuing on the renewal of the SMA. A State Department official declined to provide details on the ongoing negotiations but emphasized that the US aims for a "fair and equitable outcome" that will "support the readiness of US forces in Korea and strengthen and sustain the US-ROK alliance." The South Korean Ministry of Foreign Affairs did not respond to requests for comment. The last agreement, largely negotiated during the Trump administration, did not come into effect until March 2021, shortly after President Joe Biden assumed office. 

This transition allowed the Biden administration to make adjustments to the final terms of the deal. Initially, Trump demanded South Korea pay $4.7 billion annually—a figure that appeared to be arbitrary and prompted significant efforts by State and Defense Department officials to justify the number. Trump has since criticized the agreement, suggesting that South Korea was not contributing enough, given its wealth. "They were able to renegotiate with the Biden Administration and bring that number way, way down to what it was before, which was almost nothing," Trump remarked in a recent Time interview. "Why would we defend somebody? And we’re talking about a very wealthy country.