ID :
31091
Wed, 11/19/2008 - 16:08
Auther :
Shortlink :
http://m.oananews.org//node/31091
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S. Korea, U.S. likely to reach agreement on military spending
By Kim Boram
SEOUL, Nov. 19 (Yonhap) -- South Korea and the United States are likely to reach an agreement on how much Seoul should pay for the presence of American troops here during negotiations being held this week, officials said Wednesday.
During the two-day talks, which will begin in Honolulu on Wednesday, the two
nations will focus on setting South Korea's portion for the coming years and
changing the formula for its financial contributions, they added.
It will be the fifth round of talks this year.
"Both countries agreed to conclude the talks at this round," said an official on
condition of anonymity. "Considering South Korea's ability to shoulder the cost,
Seoul's payment next year is likely to increase by 2.5 percent in accordance with
this year's inflation rate."
The U.S. has asked that South Korea pay 14.5 percent more than it did in 2007, or
at least 6.6 percent more for next year.
South Korea paid 725.5 billion won to Washington last year and is supposed to pay
the same amount this year with an adjustment for inflation under the Special
Measures Agreement (SMA). When the deal was reached in late 2006, one dollar was
worth about 950 won. The exchange rate now hovers at around 1,400 won against the
greenback.
Washington has also called for Seoul to increase its share to 50 percent from the
current 42 percent of the total amount of the stationing cost. Seoul has denied
the request.
According to the officials, during the previous four rounds of negotiations the
two governments agreed that Seoul could pay the expenses in kind and allow the
U.S. to use the stationing cost given by South Korea for a multi-trillion-won
project to relocate the U.S. 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.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War. South Korea started sharing the costs for maintaining the
troops in 1991. The two sides have since held SMA talks every two to three years.
SEOUL, Nov. 19 (Yonhap) -- South Korea and the United States are likely to reach an agreement on how much Seoul should pay for the presence of American troops here during negotiations being held this week, officials said Wednesday.
During the two-day talks, which will begin in Honolulu on Wednesday, the two
nations will focus on setting South Korea's portion for the coming years and
changing the formula for its financial contributions, they added.
It will be the fifth round of talks this year.
"Both countries agreed to conclude the talks at this round," said an official on
condition of anonymity. "Considering South Korea's ability to shoulder the cost,
Seoul's payment next year is likely to increase by 2.5 percent in accordance with
this year's inflation rate."
The U.S. has asked that South Korea pay 14.5 percent more than it did in 2007, or
at least 6.6 percent more for next year.
South Korea paid 725.5 billion won to Washington last year and is supposed to pay
the same amount this year with an adjustment for inflation under the Special
Measures Agreement (SMA). When the deal was reached in late 2006, one dollar was
worth about 950 won. The exchange rate now hovers at around 1,400 won against the
greenback.
Washington has also called for Seoul to increase its share to 50 percent from the
current 42 percent of the total amount of the stationing cost. Seoul has denied
the request.
According to the officials, during the previous four rounds of negotiations the
two governments agreed that Seoul could pay the expenses in kind and allow the
U.S. to use the stationing cost given by South Korea for a multi-trillion-won
project to relocate the U.S. 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.
About 28,500 U.S. soldiers are stationed on the Korean Peninsula as a legacy of
the 1950-53 Korean War. South Korea started sharing the costs for maintaining the
troops in 1991. The two sides have since held SMA talks every two to three years.
