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The fourth rounds of negotiations for the 11th Special Measures Agreement between South Korea and the US in Washington, DC, on Dec. 4.

The US Army has begun informing its South Korean employees that they may be put on unpaid administrative leave starting Apr. 1 because of the lapse in the two countries’ defense cost-sharing agreement and their ongoing failure to update it, US Forces Korea (USFK) said in a statement released on Jan. 29.

The move has prompted critics to accuse the US of trying to pressure South Korea into increasing its defense cost-sharing contribution by “holding hostage” South Koreans employed by USFK.

“This notice is being provided two months in advance of the furlough date as required by US law. On Oct. 1 (2019), USFK provided the Korean Employees Union with a six-month notice [. . .] for a potential furlough pending the 2019 [Special Measures Agreement] lapse,” the statement said.

“All [Korean] employees will receive notification letters of their potential administrative furlough before Jan. 31, 2020.”

Since September 2019, South Korea and the US have held six rounds of talks aimed at concluding their 11th Special Measures Agreement (SMA), as the cost-sharing agreement is known. With the Americans making the extraordinary demand for South Korea to nearly quintuple its financial contribution to US$5 billion, the two sides have failed to reach an agreement even after the 10th SMA concluded.

South Korea is asking for a fair agreement that falls within the current SMA framework while insisting that the US credit it for contributions made separately from the cost-sharing agreement. Those contributions include purchasing US-made armaments, building a base for US troops in Pyeongtaek, and supporting US troops in international conflicts.

While recent reports have suggested that the two sides are seeking a compromise that would involve a single-digit increase, sources familiar with the negotiations say their disagreement remains considerable. If no agreement is reached by February, ratification of the deal could be delayed until the new National Assembly convenes following parliamentary elections in April.

By Yoo Kang-moon and Park Min-hee, staff reporters

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