hankyoreh

By Kim Kyu-won, staff reporter

The South Korean government set aside a budget of roughly US$750 million for its share of USFK defense costs in 2014, Ministry of National Defense figures show.

South Korea and the US are currently negotiating their respective shares of defense costs for the next five years.

The figures, obtained from the ministry by independent lawmaker and National Assembly Foreign Affairs and Unification Ministry member Park Joo-sun, showed a South Korean budget of 799.7 billion won (US$744.5 million) for its share of USFK defense costs in 2014.

The largest portion of this, totaling 341.35 billion won (US$317.8 million) was for personnel costs, followed by 297.3 billion won (US$276.8 million) for military facility improvements, 153.85 billion won (US$143.2 million) for logistical support, and 7.2 billion won (US$6.7 million) for supplementing combined defense capabilities.

The number is 69.8 billion won (US$65 million) lower than the 869.5 billion won (US$809.5 million) to be paid for 2013, but 63.7 billion won (US$59.3 million), or 8.6%, more than the 736 billion (US$685.2 million) set aside in this year’s budget for South Korea’s share of defense costs.

The reason for the difference between the budget and actual costs is that the budget is set lower than the amount decided by the government, due to the large amounts that are rolled over or remain unused from the money paid by South Korea to USFK.

But even the amount not specified in the actual budget must ultimately be paid to the US military.

The issue has prompted Seoul to submit a plan to the US for making systematic improvements to address money that is rolled over, unused, or used for other purposes in its ongoing negotiations for defense spending from next year onward. If made, the improvements would obviate the need for setting a lower budget.

But sources said the US is not in favor of the idea, perhaps because they have used some of that amount for other purposes, such as the relocation of its bases.

In addition to the plan, South Korean representatives at the negotiations also proposed a defense contribution of just over 800 billion won, similar to this year’s amount, compared to over one trillion won (US$931 million) from the US. Ahn Hong-joon, chair of the National Assembly Foreign Affairs and Unification committee, reported a difference of over 200 billion won (US$186.2 million) in the proposed amounts.

The negotiations are set to resume on Oct. 5.

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