Allies to resume talks on sharing defense cost By Lee Chi-dong

SEOUL, Oct. 29 (Yonhap) -- South Korea and the United States were to begin a crucial round of negotiations later Wednesday on how much Seoul should pay for the presence of American troops here.

The fourth round of talks this year, to be held over two days in Seoul, will
focus on setting the amount of South Korea's contribution next year, officials
said.
"The two sides have exchanged their respective demands in the previous rounds.
This round of negotiations is crucial in that a deal is expected to be outlined,"
a Foreign Ministry official said. South Korea wants to reach an agreement by the
end of this year.
The U.S. is reportedly demanding a 14.5 percent increase in South Korea's annual
share, despite Seoul's push for a single-digit hike.
South Korea paid 725.5 billion won (US$500 million) to Washington last year and
is expected to pay the same amount this year with an adjustment for inflation
under the Special Measures Agreement (SMA).
Another sticking point is whether to allow the U.S. to use the money for a
multi-trillion-won project to relocate the 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 into the base
relocation, as construction of new facilities is one of the main purposes of the
money.
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. The U.S. has reacted
coolly toward that plan.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War.
lcd@yna.co.kr
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