ROK Drop

By on October 30th, 2008 at 4:57 am

Report: Cost Sharing Funds Can Be Used to Move 2ID

Here is some good news in the midst of all the talk of further delays of the USFK transformation plan:

South Korea’s annual contribution to U.S. military funding can be used to relocate the 2nd Infantry Division to Camp Humphreys in Pyeongtaek, a Ministry of Defense spokesman said Friday.

South Korean media reports have said that various ministries are at odds as to whether funds from the Special Measures Agreement should be used for 2nd ID’s relocation at some point in the next decade.

However, the defense ministry believes the issue will be resolved, according to an official who spoke with Stars and Stripes on the condition of anonymity, which is customary.

“We agreed with the U.S. claim about this fund for the base relocation and expansion plan,” the spokesman said. “It is more effective to spend the funds building up the new facilities rather than the old ones.”

During the past fiscal year, South Korea paid more than 725 billion won ($787 million earlier this year) in SMA funds to assist with force sustainment, payment of South Korean workers and construction. The dollar figure may be less now because of the won’s recent 30 percent fall against the dollar; however, real spending shouldn’t vary greatly because most of it is done locally in won.

The two nations are still negotiating how much South Korea’s share of expenses will rise next year. The United States is asking for a 14.5 percent increase while South Korea wants a single-digit hike, according to South Korean media reports.  [Stars & Stripes]

This is a big concession from the Korean government which has rejected prior cost saving efforts as well as demanding that their cost sharing burden be paid in goods instead of cash to further delay the USFK transformation plan.  The latest reported delays have the relocation being pushed all the way back to 2019 which makes me wonder if this decision will allow 2ID to expedite their portion of the move or not?  We will have to wait and see what happens.

Expect the usual idiots out protesting over this, but I do have to wonder if this announcement had anything to do with the bi-lateral currency swap deal that is helping to stabilize the shaky Korean economy?

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