South Korea and US negotiations ended abruptly as disagreements surged over cost splitting for maintaining US troops on the Korean Peninsula. The Trump administration is reportedly demanding $5 billion from Seoul - a 400% increase since last year - to cover the cost of about 28,500 troops based in South Korea. South Korean negotiators argue the amount demanded is an unreasonable request. The issue tests the two countries’ decades-old alliance and draws attention to the larger question of quantifying the dollar value of military alliances.
The Trump administration’s decision is demonstrative of President Trump’s long-standing belief that wealthy allies should be paying the US more for their defence support. Experts have stated that the current military alliance is beneficial for both parties, as it provides Seoul with more stability and facilitates Washington's ability to secure commercial interests around the globe. Should ties be broken between the two countries, South Korea would be left alone to deal with its neighboring country, and US trade would be severely disrupted, as almost one-third of US trade comes from Northeast Asia.
