The U.S. and South Korea on Friday agreed on a new five-year plan on sharing the cost of keeping American troops in the country. The statement was made jointly by the U.S. and South Korea. For 2026, the nations agreed to raise defence cost by 8.3% to $1.13 billion, South Korea’s foreign ministry said in a statement.
Seoul and Washington launched the talks earlier than usual in what was seen as a bid to conclude the negotiations before the U.S. elections.
U.S. And South Korea finalised the new deal after eight rounds of talks that began in April. The talks were held just before the existing deals were due to expire next year. Some 28,500 American troops are stationed in South Korea as part of efforts to deter nuclear-armed North Korea.
South Korea began shouldering the costs of U.S. deployments, used to fund local labour, the construction of military installations and other logistics support, in the early 1990s.
Donald Trump, the Republican nominee in the November election, had during his presidency accused South Korea, a key Asian ally, of “free-riding” on U.S. military might, and demanded that it pay as much as $5 billion a year for the U.S. deployment.
During his presidency, both sides had struggled for months to make progress, before reaching a deal with his successor Joe Biden, when Seoul agreed to increase its contribution by 13.9%, the biggest annual rise in nearly two decades.
The cost sharing rise for 2026 compares with the average annual increase of 6.2% for the past five years, to factor in higher maintenance costs and additional local staff, Seoul’s foreign ministry said. For 2027-2030, they agreed to use the Consumer Price Index as a reference and work to make sure the annual increase does not exceed 5%, it said.
Team Bharatshakti
(With inputs from Reuters)
