WASHINGTON, Oct 04 (Alliance News): The United States and South Korea have reached a tentative new five-year cost-sharing agreement for US forces stationed in South Korea, US and South Korean authorities announced on Friday.
The deal, which will come into effect in 2026, increases South Korea’s financial contribution and aims to safeguard the alliance ahead of a potential second term for former President Donald Trump.
South Korea will contribute $1.13 billion in 2026, an 8.3% increase over 2025, under the new Special Measures Agreement (SMA).
The deal, valid until 2030, still requires approval from South Korea’s national assembly, dominated by the opposition party. The US Congress does not need to approve the agreement.
The urgency to finalize the deal stems from the challenges faced during negotiations under the Trump administration, which saw demands for South Korea to pay up to 400% more for the US troop presence.
The alliance is crucial for deterring North Korean aggression and countering China’s influence in the region.