Activists lambast Seoul-Washington deal on defense cost sharing

By Lee Chi-dong
SEOUL, Dec. 24 (Yonhap) -- The South Korean government has drawn fire from
progressive activists here for its latest deal with the United States that would
drastically increase South Korean taxpayers' burden in the planned relocation of
American military bases.
Under the Special Measures Agreement (SMA) on sharing the costs for the
stationing of 28,500 American troops, the U.S. will be allowed to use the SMA
funds for moving a frontline combat division to an expanded base in Pyeongtaek,
70 km south of Seoul.
"It is illegal. It violates a previous agreement ratified by the National
Assembly," the Solidarity for Peace and Reunification of Korea said Wednesday in
a press release.
The group, which has closely monitored the issue, was referring to the 2004 Land
Partnership Plan (LPP) deal between the allies.
At the time, the U.S. promised to pay all costs for the relocation of the 2nd
Infantry Division, while South Korea said it would shoulder the cost of
transferring the Yongsan Garrison in central Seoul to Pyeongtaek. An estimated 16
trillion won (US$12 billion) will be needed for the project.
The understanding was that South Korea's share in the SMA will not be used for
purposes other than stationing costs, such as relocation of the 2nd Infantry
Division.
South Korea has been sharing the U.S. troop maintenance costs since 1991, a
legacy of the 1950-53 Korean War.
Seoul's contributions are mostly for paying salaries to South Korean employees at
military bases, constructing new facilities, and providing logistical support.
The U.S. has claimed that there is no problem in using the SMA money for the
relocation project as it requires new buildings and other facilities in
Pyeongtaek.
South Korean Defense Minister Lee Sang-hee openly supported the U.S. stance.
"It was an issue already agreed on by both sides in 2000," Lee had said during a
parliamentary inspection session in October.
Foreign ministry officials, who negotiated the latest SMA agreement, said it was
a matter of how one interprets the purpose of sharing the defense cost.
"We made a realistic choice for the alliance in a long-term view," a negotiator
said on the condition of anonymity.
Meanwhile, South Korea will pay 760 billion won (US$571 million) next year for
its share, as the new agreement calls for Seoul to increase its share each year
until 2013 in accordance with the consumer price index. The domestic inflation
rate stood at 2.5 percent in 2007.
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
South Korea will also phase out the cash assistance within the next three years
to provide facilities and other materials in an effort to enhance transparency in
the burden-sharing.
"The ratio of material provision will increase gradually to 30 percent in 2009,
60 percent in 2010, and 88 percent in 2011," the negotiator said.
The remaining 12 percent needed for designing and supervision of construction
works will be paid continuously in cash, he added.
lcd@yna.co.kr
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