[Breaking News] Korea-U.S. defense budget negotiations...KRW 1.519.2 trillion, up 8.3% in 2026

South Korea and the U.S. agreed to raise the U.S. military's defense contribution by 8.3 percent to 1.519.2 trillion won next year.

The Ministry of Foreign Affairs said the two countries reached the 12th Korea-U.S. Special Agreement on Defense Sharing, which calls for increasing the South Korea-U.S. defense cost share by 8.3% and 116.4 billion won in 2026 from next year after eight consultations since April.

The validity of this agreement will be five years until 2030, and the annual growth rate will be applied to the consumer price index growth rate instead of the defense expenditure growth rate currently applied in the 11th special agreement.

It also agreed to ensure that the annual growth rate does not exceed 5% to prevent a sharp increase in contributions due to unexpected economic conditions.

At the same time, the Ministry of Foreign Affairs explained that it has agreed on various measures to improve the system, including the abolition of the U.S. military's offshore asset maintenance support, which has been continuously raised by the National Assembly.

At the same time, he said that the 12th special agreement is expected to be concluded with sufficient time within the validity period of the current 11th agreement, guaranteeing the parliamentary deliberation period and ensuring stable implementation.