S. Korea, U.S. about to sign deal on military burdensharing

By Lee Chi-dong
SEOUL, Dec. 3 (Yonhap) -- South Korea and the United States will issue a written
accord next week on how much Seoul should contribute to the cost of stationing
U.S. troops here in the coming years, a senior foreign ministry official said
Wednesday.
"The two sides are fine-tuning the wording on minor technical issues," the
official said, asking not to be named. "A final deal will be produced next week
so that the foreign minister can sign it."
The government plans to submit it to the National Assembly for approval before
Christmas, he added.
Seoul and Washington ironed out differences on the main issues in the fifth round
of negotiations held in Honolulu last month.
"South Korea will increase its share over the next five years in accordance with
the consumer price index," the official said.
Seoul provided the U.S. with 725.5 billion won in cash last year and is expected
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 1,450 won
against the greenback.
Given the domestic inflation rate of 2.5 percent in 2007, South Korea will have
to pay about 760 billion won next year. It is far below Washington's initial
demand for 14.5-percent hikes, according to the official.
South Korea has instead agreed to allow the U.S. to use the SMA funds to relocate
the U.S. Second Infantry Division to a consolidated base in Pyeongtaek, 70km
south of Seoul, which would drastically increase South Korea's financial
contributions to the overall base relocation program.
Under the 2004 Land Partnership Plan (LPP) deal, the U.S. promised to pay all
costs for the relocation of the frontline division, while South Korea said it
would shoulder the cost of moving the Yongsan Garrison in central Seoul to
Pyeongtaek.
But the two sides will not explicitly state the LPP-related agreement in their
pact to be released next week, according to the official.
"If we do, it might formally contravene the LPP deal," he said. "We wil just
express understanding of the U.S. position on the matter."
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 U.S. has saved about 1.2 trillion won from the SMA funds so far and has
deposited it in a bank for the base relocation project.
lcd@yna.co.kr
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