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S. Korea should pay $1b for THAAD: Trump

PUBLISHED : April 28, 2017 - 16:47

UPDATED : April 28, 2017 - 16:47

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[THE INVESTOR] US President Donald Trump on April 28 called for South Korea to pay US$1 billion for a missile shield being deployed here and vowed to renegotiate a bilateral free trade pact, stirring heated reactions in South Korea. 

Amid intense debate at home and diplomatic friction with China, launchers, a radar and other key components of the Terminal High Altitude Area Defense system were brought on April 28 to the planned deployment site in Seongju, North Gyeongsang Province. Seoul offered the land and the US Forces Korea is responsible for the installment and management of the system.

“Why are we paying a billion dollars? So I informed South Korea it would be appropriate if they paid,” Trump said in an interview with Reuters, stressing the system is intended to protect South Korea.

“It’s phenomenal. It’s the most incredible equipment you’ve ever seen -- shoots missiles right out of the sky. … We’re going to protect them. But they should pay for that, and they understand that.”

Trump’s remarks represent the clearest signal yet that he has set out to materialize his commitment to having allies and partners pay for what he has called a “fair share” of defense costs.

Seoul refuted his argument on THAAD, saying the deployment plan had already been settled in line with the South Korea-US Status of Forces Agreement, which governs the legal status of some 28,500 US troops stationed here.

“Our basic position remains unchanged that according to SOFA, we provide the land and related facilities and the US will pay for the THAAD system’s operation and maintenance costs,” the Defense Ministry said in a statement.

A Foreign Ministry official said the government has not been “informed” of any THAAD payment, adding it plans to lodge a complaint to Washington over what he called a “diplomatic discourtesy.”

On the free trade agreement between the two countries, Trump pledged to renegotiate or terminate the “horrible” deal, taking issue with deepening trade deficits.

“It’s unacceptable,” Trump said. “It’s a great deal for South Korea. It’s a terrible deal for us.”

According to the US Census Bureau, the country’s trade deficit in goods with South Korea grew from $16.6 billion in 2012 to $27.7 billion in 2016.

South Korea’s surplus with the US, meanwhile, rose from $15.2 billion to $23.2 billion during the same period, data from the Korea International Trade Association showed.

Seoul argues automobiles are a small fraction of two-way trade, and has been seeking to import more energy from the US while encouraging its companies to invest more there.

During a visit to Seoul last week, US Vice President Mike Pence also said his administration will “review and reform” the free trade agreement, saying it retains “too many barriers” for American companies.

On the campaign trail, Trump denounced the pact as a “job killer,’ especially for the US auto industry.

Trump also said there is a possibility of a “major conflict” with North Korea, though he pursues a diplomatic solution despite difficulties. 

“There is a chance that we could end up having a major, major conflict with North Korea. Absolutely,” he said.

By Shin Hyon-hee/The Korea Herald (heeshin@heraldcorp.com)

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