Seoul: South Korea and the United States have formally signed a defense cost-sharing agreement as Seoul aims to expedite its domestic ratification process to ensure the stable stationing of American troops in the region ahead of the U.S. elections. This agreement comes a month after both countries reached a new five-year arrangement to determine Seoul’s share of the expenses for maintaining the 28,500-strong U.S. Forces Korea (USFK).

According to Yonhap News Agency, the deal, known as the Special Measures Agreement (SMA), was signed by Foreign Minister Cho Tae-yul and U.S. Ambassador to South Korea Philip Goldberg at the foreign ministry in Seoul. Under the terms of the 12th SMA, which will be in effect until 2030, South Korea will increase its payment to 1.52 trillion won (approximately US$1.19 billion) in 2026, reflecting an 8.3 percent rise from the 1.4 trillion won allocated in 2025. The agreement introduces a new method of adjusting Seoul’s annual contributions based on the consumer price index, moving
away from the previous system that linked increases to South Korea’s defense budget.

The foreign ministry stated that the agreement would be submitted to the National Assembly promptly for ratification. The ministry emphasized that the agreement is anticipated to significantly contribute to maintaining stable conditions for USFK’s stationing and strengthening the joint defense posture of South Korea and the U.S.

The timing of the signing is notable, occurring just days before the U.S. presidential election. Earlier negotiations for the renewed SMA began in April, earlier than anticipated, reflecting Seoul’s desire to finalize a new deal prior to any potential changes in the U.S. administration. Former U.S. President Donald Trump, during his tenure, had demanded a substantial increase in Seoul’s financial contributions, at one point suggesting a rise to as much as $50 billion, and characterized South Korea as benefiting disproportionately from U.S. military support.

Since 1991, South Korea has taken on part
ial financial responsibilities under the SMA, including costs for Korean USFK workers, the construction of military facilities, and other logistical support.