Seoul: With a new tariff agreement concluded, South Korea is preparing to address significant alliance issues with the United States, as the Trump administration continues to urge allies to assume greater defense and security responsibilities.
According to Yonhap News Agency, the tariff deal, finalized on Thursday, requires South Korea to invest US$350 billion in the U.S. in return for a reduction in the reciprocal tariff rate from the proposed 25 percent to 15 percent. Notably, alliance issues were not part of the tariff deal conditions. However, these matters are expected to surface when President Lee Jae Myung meets with Trump in the upcoming summit. The discussions are likely to include South Korea's defense spending increase, redefining the role of U.S. troops stationed in Korea, and the transition of wartime operational control to Seoul.
A prominent topic is the "modernization of the alliance," a term frequently mentioned by Washington, which signals a push for U.S. allies to bear more defense burdens and support strategies against China. This raises questions about the potential expansion of the role of the 25,800-strong U.S. Forces Korea (USFK) for operations beyond the Korean Peninsula, known as "strategic flexibility."
This issue was also highlighted in recent phone talks between South Korea's Defense Minister Ahn Gyu-back and U.S. Defense Secretary Pete Hegseth, during which they agreed to continue consultations to "modernize" the alliance. This marked the first mention of the phrase in bilateral defense discussions. The topic will further be addressed in a meeting between Foreign Minister Cho Hyun and U.S. Secretary of State Marco Rubio.
Attention is also on South Korea's response to the anticipated U.S. demand for increased defense spending, similar to NATO allies. Hegseth emphasized maintaining a "strategically sustainable" alliance and contributing to deterrence against "shared threats," as noted in a Pentagon readout. U.S. State Department deputy spokesperson Mignon Houston reiterated the expectation for South Korea to strengthen its defense capabilities.
The Pentagon has urged Asian allies to allocate 5 percent of their GDP to defense, aligning with NATO agreements. South Korea's current defense budget amounts to approximately 2.32 percent of its GDP.
The Trump administration may also seek to renegotiate the defense cost-sharing deal established under the Biden administration last year for USFK maintenance. Additionally, the transition of wartime operational control (OPCON) to Seoul remains a critical issue. The allies have been working towards a "conditions-based" OPCON transfer, requiring South Korea to demonstrate leadership capabilities, sufficient strike and air defense capabilities, and a favorable regional security environment.
Concerns have arisen that progress on the OPCON transfer could lead to a reduction in USFK, affecting Seoul's deterrence strategy against Pyongyang. Earlier, Ahn expressed the Lee government's aim to retake OPCON within its five-year term, though this was later clarified as his personal opinion.