U.S. and South Korea Seal New Defence Cost Sharing Plan

The United States and South Korea have agreed on a new five-year plan for sharing defence costs. By 2026, South Korea will increase its contribution by 8.3%, reaching 1.52 trillion won. This agreement precedes the U.S. election, following eight rounds of negotiations, and aims to accommodate rising maintenance costs.

The United States and South Korea have solidified a new five-year agreement focused on sharing the financial responsibilities associated with maintaining American troops on South Korean soil. Announced by both countries' foreign ministries, this plan reflects a strategic move ahead of the upcoming U.S. election.

For the year 2026, South Korea has committed to an 8.3% increase in defence spending, totaling 1.52 trillion won. This decision, concluded after initiations in April and eight negotiation rounds, is aimed at pre-empting the expiration of current agreements. Currently, approximately 28,500 U.S. troops are deployed in South Korea.

The new agreement also addresses future cost adjustments. From 2027 to 2030, the Consumer Price Index will guide annual increases, ensuring they stay below 5%. This development follows a historical struggle over defence costs during Trump's presidency, which was ultimately resolved under Biden's administration.