Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.
South Korean lawmakers have approved a new cost-sharing agreement with the United States to maintain 28,500 American troops on the Korean Peninsula through 2026.
Something you should know before you read: Since 1953, the United States has maintained a military presence on the Korean Peninsula as part of its commitment to the defense of South Korea under the mutual defense treaty signed after the Korean War armistice. These forces play a crucial role in deterring aggression from North Korea, which remains a persistent threat due to the lack of a formal peace treaty between the two Koreas. The US troops conduct joint military exercises with South Korean forces, ensure combat readiness, and support regional stability in Northeast Asia. Their presence also reinforces US strategic interests in the Indo-Pacific region, counterbalancing the influence of neighboring powers like China and Russia.
What’s going on now: On Friday, South Korean lawmakers approved an initial $1.1 billion contribution as part of a new cost-sharing agreement with the United States, ensuring the continued stationing of approximately 28,500 American troops on the Korean Peninsula from 2026 onward. The deal includes provisions for annual increases tied to South Korea’s consumer price index, with a 5% cap to prevent steep rises during economic downturns. These funds will support US military operations, infrastructure projects on American bases, and wages for local South Korean workers employed by US Forces Korea.
This all comes as South Korean lawmakers are bracing for Trump’s return to power. Previously, Trump demanded significantly higher payments from South Korea to support the US military presence on the Korean Peninsula. During his administration, Trump insisted that South Korea pay as much as $5 billion annually—five times the agreed amount—arguing that South Korea was not contributing its fair share to the alliance. These demands led to lengthy negotiations in 2019, temporarily extending South Korea’s contribution rate temporarily.
