YONHAP NEWS

(LEAD) S. Korea-U.S. defense cost sharing talks fail to bring breakthrough

   SEOUL, Aug. 29 (Yonhap) -- Negotiators from South Korea and the United States have again failed to wrap up talks on readjusting Seoul's financial share in maintaining tens of thousands of U.S. troops in Korea, South Korean officials said Friday.

   The two sides decided to hold another round of talks in Washington in late September, they said.

   Negotiators met from Thursday to try to strike a new special accord on defense cost-sharing for the coming two to three years. But after two days of intensive sessions in Seoul no progress had been achieved.

   About 28,500 U.S. troops are stationed in Korea as a legacy of the 1950-53 Korean War. South Korea footed 725.5 billion won (US$720 million), about 42 percent of the total expense, for stationing them last year.

   During the negotiations Washington demanded Seoul pay 6.6 to 14.5 percent more next year, while Seoul limited any possible raise to a maximum 2.5 percent, equal to last year's domestic inflation rate, the officials said.
The U.S. also asked Seoul to increase its portion of the cost to 50 percent on a long-term basis, officials said. Seoul proposed to set its share at an "adequate and reasonable" level and to change the cost-sharing method from paying one lump sum to sending materials on a case-by-case basis, they added.

   The two sides also discussed how to make use of some 800 billion won U.S. forces currently have in their coffers but have yet to use, the officials said.

   "Both sides, in a professional and practical atmosphere, exchanged their opinions on key issues of defense cost sharing, enhancing our understanding of each other's position," one of the officials said. "We will continue talks in the future," he added.

   Cho Byeong-je, Seoul's chief negotiator on cost sharing, led the South Korean delegation, while the U.S. team was led by Jackson McDonald, ambassador for defense cost-sharing negotiations at the U.S. State Department.

   The first round was held in Washington on July 21.

   sshim@yna.co.kr
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