S. Korea chooses economic expert as chief negotiator for defense cost-sharing talks with US

Posted on : 2019-09-18 16:31 KST Modified on : 2019-10-19 20:29 KST
Chung Eun-bo, former FCC vice chairman, would be first negotiator from outside Defense Ministry and Foreign Ministry
Chung Eun-bo
Chung Eun-bo

Reports indicate that the chief South Korean representative in its negotiations with the US over their defense cost-sharing agreement, which are slated to begin at the end of September, is likely to be Chung Eun-bo, former vice chairman of the Financial Services Commission, and a veteran of the Ministry of Economy and Finance. As South Korea draws closer to appointing its chief negotiator, the countdown has begun for negotiations on the 11th Special Measures Agreement, which will determine South Korea’s financial contribution next year to the cost of stationing American troops on the Korean Peninsula.

“After a number of candidates were considered, Chung Eun-bo is likely to serve as the chief representative in the cost-sharing negotiations,” said a senior official in the South Korean government on Sept. 17. Another official agreed, noting that “Chung is being strongly considered” for the position.

If Chung’s appointment as the lead negotiator is confirmed by South Korean President Moon Jae-in, he would be the first person from the Ministry of Economy and Finance (rather than the Ministry of Foreign Affairs or the Ministry of National Defense) to represent South Korea in the cost-sharing negotiations. However, Blue House Spokesperson Ko Min-jung cautioned on Tuesday that “nothing has been decided yet.”

A graduate from the business department at Seoul National University, Chung was a consummate economic bureaucrat: before his retirement, he served as an international finance policy officer and then assistant deputy minister at the Ministry of Economy and Finance and as financial policy bureau head and vice chairman at the Financial Services Commission. During the negotiations for the South Korea-US Free Trade Agreement, Chung was head of the domestic support team. That gives him a connection with Kim Hyun-chong, who led the negotiations at the time and is currently the second deputy chief of the Blue House's National Security Office.

It would represent a substantial change for an economic expert from the Ministry of Economy and Finance to be appointed to lead the cost-sharing negotiations, which have been hitherto overseen by officials from the Defense Ministry and the Foreign Ministry. This shift appears aimed at taking a closer look at the appropriateness of the amounts and categories of funding requested by the US, which is pressuring South Korea to greatly increase its defense contribution. But there are also concerns about whether an economic expert can respond effectively to the new standards that the US is expected to bring up during the negotiations, which could include more strategic demands and the expectation that its allies will make a much greater military contribution.

The US has reportedly continued to push South Korea to massively boost its contribution to defense cost-sharing, which stands at 1.04 trillion won (US$873.12 million) this year, claiming that the direct and indirect costs of maintaining its garrison in South Korea amount to around US$5 billion each year. Along with more funds, some analysts think that the US wants South Korea to actively participate in its Indo-Pacific strategy through troop deployments and other activity. South Korea stresses that its contribution should be kept at a “reasonable and fair” level. But the negotiations aren’t likely to be easy given strong pressure for more defense funding from US President Donald Trump, who hopes to claim this as a major foreign policy achievement in his next election campaign.

“We defend countries that are immensely wealthy and [. . .] they don’t pay us for almost anything. [. . .] Sometimes our allies treat us worse than anybody else,” Trump said during a speech on Sept. 12.

Trump might even ask for an increase in South Korea’s defense contribution during his summit with Moon, who will be visiting the US on Sept. 22-26 to attend the UN General Assembly.

By Park Min-hee and Lee Wan, staff reporters

Please direct comments or questions to [english@hani.co.kr]

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