U.S. Demands Raise in Defense Expenses Shared Despite Reduction in USFK

It has been revealed that despite the reduction of the U.S. Forces in Korea, the U.S. demanded a greater than 8.8 percent increase from this year’s share of defense expenses for next year’s expenses.

An official from the Ministry of Foreign Affairs and Trade said on July 27: “The U.S. has requested to extend the payment program in which the share of ROK-U.S. defense expenses rises by 8.8 percent annually from the previous year, which was applied from 2002 to 2004, for another year at the negotiation talks for ROK-U.S. share of defense expenses last week.”

This official said, “I am aware that new standards for the share in defense expenses for 2005 to 2007 was to be decided at this negotiation, but since the U.S. seems to find it difficult to conclude the negotiation within this year, they have requested to extend the existing payment program for another year.”

However, Korea views Korea’s share should decrease because of the reduction of the U.S.F.K.

The government is considering a plan to change from the index method, in which the amount is increased by the totaled figure of an 8.8 percent fixed raise and the rising rate in prices, to a “method based on how much is required” in which the shares in defense expenses are determined after confirming the American troops’ expense items and expenditure process.

A National Defense Ministry official also said: “It is true that time is tight, but we informed our view to the U.S. to reach a compromise in the negotiations within this year and apply the new standards starting next year.”

Ho-Won Choi bestiger@donga.com