hankyoreh

The recently constructed US Army Garrison Camp Humphreys in Pyeongtaek

Despite ten rounds of negotiations, South Korea and the US failed to reach a deal on how to share the cost of defense in what is known as the Special Measures Agreement (SMA). The two points on which the two sides were unable to narrow their differences were how much South Korea must pay and how long the agreement will remain in force. No deal is likely to emerge before Dec. 31, when the current agreement expires, which will inevitably create a gap in funding arrangements.

Negotiations on this agreement have dragged on before, creating a vacuum that lasted for more than six months before the new agreement was signed and implemented. This cost-sharing agreement defines South Korea’s contribution to the burden of stationing American troops on the Korean Peninsula.

“South Korea and the US drafted a document after reaching an agreement on all but a couple of points, including the total amount and the period of validity. But the two sides weren’t able to reach a final agreement because of their disagreement about those points. There’s still a lot of daylight between them,” said an official at South Korea’s Ministry of Foreign Affairs who is familiar with the negotiations on Dec. 14.

The two sides are still reportedly at odds, with the Americans asking for a major increase in South Korea’s financial contribution and the South Koreans pushing for institutional improvements, such as greater transparency in the agreement’s execution, and arguing that the cost increase should be kept at a reasonable and sensible level. The US negotiators are reportedly attempting to increase South Korea’s contribution from its current level of 960 billion won (US$847.5 million) by 50% to around 1.4 trillion won (US$1.27 billion).

“We’re trying to bridge the gap, but it’s not easy. [Since the contentious points are all tied together,] it’s assumed in these negotiations that nothing can be agreed upon until everything has been agreed upon,” said the official from the Foreign Ministry.

This official said that the two sides are unlikely to sit down together for additional negotiations before the end of the year. The South Korean government plans to keep working toward a resolution through diplomatic channels between the two countries.

Even if the two governments dramatically wrap up their negotiations around the New Year, a two- or three-month gap in the agreement’s coverage is inevitable because of the requirement for the agreement to be ratified by the National Assembly. The consequences of such a situation were detailed in a letter that US Forces Korea Chief of Staff Michael Minihan sent to Choe Eung-sik, chair of the USFK Korean Employees Union, on Nov. 7. If the cost-sharing negotiations are not resolved, Minihan wrote, Korean employees of USFK will be put on unpaid leave starting on Apr. 15, 2019.

“This is the first time that USFK has sent us official notification that wages might not be paid,” said Son Ji-oh, the union’s secretary general, in a phone call with the Hankyoreh. Although this is a precautionary measure, taken in case the cost-sharing agreement is not immediately renewed, it also appears to be a bid to use Korean workers’ wages to pressure the South Korean government.

An official from South Korea’s Foreign Ministry responded by saying that “the Defense Ministry will deliberate with USFK. We will strive to minimize any negative impact on Korean workers.” In the mid- and long-term, the government is planning to approach the US about directly hiring Korean workers at US military facilities.

By Noh Ji-won, staff reporter

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