The Flow of US-ROK Defense Cost-Sharing Negotiations

Trump Administration Era (2018-2020)

• Trump’s Negotiation Strategy:
  Trump led negotiations by presenting bold numbers and symbolic goals.
  He initially demanded $5 billion in defense cost-sharing, which became a major point of conflict in the negotiations.
• South Korea’s Response Strategy:
  South Korea proceeded with negotiations based on domestic law and budget constraints in response to Trump’s coercive demands.
  It utilized strategies of “delaying” and focusing Trump on other Korean Peninsula issues (inter-Korean and US-North Korea summits).
• Key Issues in Defense Cost-Sharing Negotiations:

• The United States requested cost-sharing for personnel expenses and costs outside of South Korea (Hawaii, Seattle, etc.).
• Significant discussions took place in resolving conflicts with domestic laws (National Fiscal Law, etc.).
• Efforts were also made to shift defense cost-sharing from cash support to in-kind support.

Strategies and Techniques in the Negotiation Process

• Behind-the-Scenes Negotiations and Psychological Warfare:
  Strategies were coordinated through formal and informal contacts, and plans were established to match Trump’s style.
  Trump’s character was characterized as being oppressive yet desiring quick conclusions, and responses were designed accordingly.
• The Role of Domestic and International Public Opinion:
  The understanding and consent of the public and the National Assembly influenced the success of the negotiations.
  It was difficult to resolve the defense cost issue with a single negotiation, requiring continuous effort.

Realistic Limitations and Implications

• Defense cost-sharing negotiations are linked to the overall US defense spending structure, going beyond the issue of USFK.
• The US strategy of sharing personnel expenses and US mainland costs is likely to be strengthened in the long term.
• The Republic of Korea must present an optimal burden-sharing plan, considering national interests and cost-effectiveness, and emphasize the importance of the US-ROK alliance.

< Summary >
The US Trump administration pursued a high-intensity strategy to significantly increase the ROK-US defense cost-sharing, but the Republic of Korea actively utilized behind-the-scenes negotiations, public opinion campaigns, and delay tactics to rationalize costs within the scope of domestic law and budget.

While adhering to international law and the principles of the ROK-US alliance, the negotiations moved in a direction to find a Pareto optimum (the best point that everyone can accept), and improvements such as switching to in-kind payments instead of cash were also made in the negotiation process.

[More…]

1. The Essence of Trump’s Negotiations: What Should Be Kept in Mind?
2. The Flow and Prospects of ROK-US Defense Cost-Sharing Negotiations

*YouTube Source: [Jun’s economy lab]

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