Report: U.S. buckles in S. Korea troop-funding talks

Demand that Seoul pay five times more has been dropped

SEOUL, South Korea — Days before a troop-funding deal was set to expire, the U.S. has dropped its demand that South Korea pay five times more to host its military personnel after receiving assurances Seoul would purchase more American weapons, a newspaper report said.

The Trump administration also likely eased up after South Korea indicated it would step up its presence in the Strait of Hormuz, helping U.S. efforts to protect oil flows in the region, South Korea’s Chosun Ilbo newspaper reported Thursday, citing an unidentified diplomatic source. The increase now may be about 10% to 20% above the current level of nearly $1 billion, it said.

South Korea’s foreign ministry declined to comment on the report.

Last month, U.S. negotiators walked out of a meeting on troop funding in Seoul after South Korea balked at the fivefold increase seen as exorbitant by many in the country. The breakdown at that time raised questions about one of the U.S.’s closest military alliances and a key piece of the Pentagon’s strategy for countering North Korea and a rising China. Talks resumed in December.

Even though the deal known as the Special Measures Agreement technically expires at the end of this year, both sides are likely to agree to some sort of temporary extension as they negotiate, allowing for the continued operations of the about 28,500 U.S. military personnel on the peninsula.

The talks with South Korea could affect other countries that host U.S. troops as the Trump administration is seeking funding increases from other American allies.

Trump, arguing that South Korea is rich and should pay more for U.S. protection, has demanded Seoul contribute about $5 billion for hosting U.S. troops. The request for more money hasn’t sat well in South Korea, where many in President Moon Jae-in’s progressive camp and opposition conservatives have come out against the demands. Moon, facing a sagging support rate, may not want to make any major concessions that further dent his popularity ahead of an election for parliament next year.