The U.S. and South Korea signed a five-year defense cost-sharing agreement under the 12th Special Measures Agreement (SMA), effective from 2026 to 2030. The deal sets South Korea’s 2026 contribution for the stationing of U.S. forces at $1.13 billion (1.52 trillion won), an 8.3% increase from 2025. Annual increases will be tied to the Consumer Price Index, replacing the previous method based on the defense budget growth rate.

Another change is the removal of support for U.S. overseas asset maintenance. The U.S. and South Korea clarified that the latter’s defense cost-sharing funds will only be used for assets stationed on the Korean Peninsula, formally ending support for overseas asset maintenance.