April 20, 2024
Economy
Korea refuses renegotiations on THAAD cost
[THE INVESTOR] South Korea ruled out renegotiations on the cost for deploying the US THAAD missile defense system on May.
“I don’t think it’s an issue for renegotiation,” Moon Sang-gyun, a spokesman for the Ministry of National Defense, said at a press briefing.
Who should foot the bill for the THAAD equipment being set up in South Korea has emerged as a hot alliance topic since US President Donald Trump said in an interview last week he wants Seoul to pay for the costs estimated at US$1 billion.
The US Forces Korea has installed key components of the new weapon at a former golf course in Seongju, North Gyeongsang Province, under a controversial 2016 agreement with South Korea. They said the positioning of THAAD on the peninsula is a must to help thwart North Korea’s nuclear and missile ambitions.
South Korea agreed to provide land for the site and the US said it would be in charge of funding the installation and maintenance. The deal was reached in accordance with the bilateral Status of Forces Agreement which calls for the USFK to pay for the operation of its own weapons in the country, according to Moon. The document of last year’s accord is classified, he added.
The allies plan to start separate negotiations next year on sharing the financial burden for stationing the USFK. The current five-year contract, which calls for Seoul to pay 920 billion won (US$809 million) each year, is to expire in 2018.
By Alex Lee and news wires (alexlee@heraldcorp.com)
“I don’t think it’s an issue for renegotiation,” Moon Sang-gyun, a spokesman for the Ministry of National Defense, said at a press briefing.
Who should foot the bill for the THAAD equipment being set up in South Korea has emerged as a hot alliance topic since US President Donald Trump said in an interview last week he wants Seoul to pay for the costs estimated at US$1 billion.
The US Forces Korea has installed key components of the new weapon at a former golf course in Seongju, North Gyeongsang Province, under a controversial 2016 agreement with South Korea. They said the positioning of THAAD on the peninsula is a must to help thwart North Korea’s nuclear and missile ambitions.
South Korea agreed to provide land for the site and the US said it would be in charge of funding the installation and maintenance. The deal was reached in accordance with the bilateral Status of Forces Agreement which calls for the USFK to pay for the operation of its own weapons in the country, according to Moon. The document of last year’s accord is classified, he added.
The allies plan to start separate negotiations next year on sharing the financial burden for stationing the USFK. The current five-year contract, which calls for Seoul to pay 920 billion won (US$809 million) each year, is to expire in 2018.
By Alex Lee and news wires (alexlee@heraldcorp.com)
