South Korea Stays Committed to U.S. Defense Cost Deal

By Global Leaders Insights Team | Jul 09, 2025

South Korea is sticking with its agreement to share the costs of U.S. troops stationed on its soil, which quoted government officials. This comes as the country juggles trade and security talks with the U.S. under President Donald Trump, who’s been vocal about wanting allies to chip in more for American military support.

Last October, South Korea and the U.S. signed a five-year deal, known as the Special Measures Agreement (SMA), to split the expenses of keeping 28,500 U.S. troops in the country. For 2026, South Korea agreed to bump up its share by 8.3% to $1.13 billion—the biggest yearly increase since 2021.

The deal aims to keep the region stable and counter North Korea’s growing threats, and South Korea plans to honor it, despite Trump’s push for allies to pay more.

  • South Korea Reaffirms $1.13 Billion U.S. Troop Cost Deal Amid Rising Tensions
  • Despite Political Turmoil, South Korea Stands by U.S. Defense Pact Through 2026
  • Seoul Maintains Military Cost Agreement as North Korea Threatens and Trump Pressures Allies

The Foreign Ministry made it clear that this defense deal isn’t tied to trade talks, a point echoed by Acting President and Finance Minister Choi Sang-mok. But Trump’s suggestion of linking military costs to economic discussions has some in Seoul worried about possible trade concessions. The U.S. troops are crucial for South Korea, especially with North Korea stepping up its missile tests and nuclear saber-rattling.

This decision follows a chaotic stretch for South Korea. Former President Yoon Suk Yeol was impeached and ousted in April 2025 after briefly declaring martial law. Acting President Choi has worked to keep ties with the U.S. strong. Experts say sticking to the deal shows South Korea’s need to maintain its alliance with the U.S., especially with North Korea cozying up to Russia.

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By holding firm on the agreement, South Korea solidifies its role as a key U.S. ally in the Indo-Pacific, navigating domestic challenges while prioritizing global security.