Korean Job Discussion Forums

[wylies99]

. Korea, U.S. struggle to reach deal on sharing defense cost
http://www.koreaherald.co.kr/


The United States is demanding South Korea pay half of the US$3 billion in annual non-personnel stationing costs (NPSC) to maintain its troops here, a government official was quoted as saying by Yonhap News Agency on Friday after the latest round of negotiations on the issue.

"The U.S. claims the total annual spending for the troops reaches $5 billion. It demands South Korea share the burden for half of the non-personnel stationing costs, excluding $2 billion in wages for U.S. soldiers," the official said on condition of anonymity. The two nations ended the fourth round of talks over how much Seoul should pay for the presence of U.S. troops the day before.


South Korea provided the U.S. with 725.5 billion won in cash last year and is expected to pay the same amount this year with an adjustment for inflation under the Special Measures Agreement (SMA). When the deal was reached in late 2006, one dollar was worth about 950 won. The exchange rate now hovers at around 1,400 won against the greenback.


Seoul pays the share in won instead of dollars as the money is largely used to pay wages for Korean employees at U.S. military bases and to construct facilities here.


"South Korea`s annual contributions to the non-personnel stationing costs comprises direct cash aid and indirect assistance, such as rent for military bases, public fees, and tax breaks, namely fixed costs," the official said.


The U.S. argues South Korea`s share accounts for 42 to 43 percent of the NPSC and should be raised to 50 percent.


South Korea, however, dismisses the U.S. calculation, saying it is difficult to measure its indirect contributions.


"Regardless of the percentage of the NPSC, we are pushing to set a fair and appropriate portion in consideration of our financial capacity," the official said.


In the most recent round of negotiations held in Seoul, the official added, the two sides laid out a framework for a package deal to adress contentious issues.


"I think we passed the halfway point. The next round of talks will be held in late November," he said. South Korea hopes to strike an agreement by the end of this year.


Another sticking point is whether to allow the U.S. to use the stationing cost budget for a multi-trillion-won project to relocate the U.S. Second Infantry Division to a consolidated base in Pyeongtaek, 70 km south of Seoul.


Under the 2004 Land Partnership Plan (LPP) deal, the U.S. is required to pay all costs for the relocation of the front-line division, while South Korea is to shoulder the cost of moving the Yongsan Garrison in central Seoul to Pyeongtaek.


The U.S. claims there should be no problem with funneling SMA funds to the base relocation as construction of new facilities is one of the main purposes for using the SMA.


South Korea is also seeking to provide the U.S. military with funds and materials on a case-by-case basis rather than paying a lump sum, a bid to enhance transparency of where taxpayers` money is used.


About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of the 1950-53 Korean War. South Korea started sharing the costs for maintaining the troops in 1991. The two sides have since held SMA talks every two or three years.



2008.10.31

[wylies99]

The Korea Herald continues its move to the left of the political spectrum.