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U.S., South Korea Can't Agree If Their Defense Cost Talks Have Started

U.S., South Korea Can't Agree If Their Defense Cost Talks Have Started

(Bloomberg) -- The U.S. and South Korea can’t even agree on whether they’ve started talks on sharing defense costs, let alone how much to pay.

President Donald Trump threw the long-simmering issue of alliance cost-sharing back on the agenda Wednesday with a tweet saying “talks have begun” to increase South Korea’s payments for U.S. military protection. That prompted a South Korean government official to say that the next round of negotiations between the two sides hasn’t yet started.

The tweet is the latest example of Trump’s penchant for putting pressure on allies with ever-increasing demands. South Korea has been a particular target, with the Trump administration seeking a 50% increase in funding last year and requesting new commitments such as joint patrols of the Persian Gulf.

The last cost-sharing negotiations were so contentious that the two sides opted for a one-year deal -- as opposed to the usual five-year pact -- that boosted South Korea’s contribution by about 18%. That set up for another round of talks this year, even as the allies work to present a united front against a more provocative North Korea.

Trump’s comment comes ahead of Defense Secretary Mark Esper’s first visit to Seoul since being confirmed last month. Esper is slated to meet South Korean President Moon Jae-in and Defense Minster Jeong Kyeong-doo on Friday.

A senior Trump administration official reiterated Trump’s comments Wednesday, saying “discussions have begun to further increase South Korea’s contributions to military defense.”

Moon, who said his predecessor’s administration was “out of their minds” for caving to U.S. demands, faces pressure to hold the line on cost-sharing ahead of parliamentary elections next year. “If such requests are made, we must confidently negotiate in talks where we are not humiliated,” Moon said while campaigning in 2016.

South Korea may be splitting hairs by saying that talks on the allies’ so-called 11th Special Measures Agreement haven’t formally begun. Foreign Minister Kang Kyung-wha acknowledged at a parliament meeting last week that “there were exchanges of opinions on the fundamental matters” during a visit by U.S. National Security Adviser John Bolton, although she said “a specific amount in cost was not discussed.”

“One thing that is clear, however, is that I believe a rational level of cost-sharing should be discussed,” Kang said. The South Korean government has previously denied reports that the U.S. was seeking a five-fold increase to South Korea’s now roughly $1 billion annual cost-sharing bill.

In his tweets, Trump expressed confidence that Seoul would pay up. “South Korea is a very wealthy nation that now feels an obligation to contribute to the military defense provided by the United States of America,” he said.

--With assistance from Justin Sink.

To contact the reporter on this story: Jihye Lee in Seoul at jlee2352@bloomberg.net

To contact the editors responsible for this story: Brendan Scott at bscott66@bloomberg.net, Karen Leigh

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