U.S. forces in Korea generate $67 bn in annual economic value: Analysis

South Korea has gained up to 930 trillion won ($696.29 billion) in economic value from the presence of United States Forces Korea (USFK) over the past 10 years, an analysis showed Sunday, highlighting the role of the Korea-U.S. alliance as a safety net for economic development.

According to an analysis by Maeil Business Newspaper and the Federation of Korean Industries (FKI), the economic value of the military alliance with the U.S. in Korea from 2013 and 2022 based on the presence of USFK was estimated at between 469 trillion won and 928 trillion won. The amount is up to 59 percent of Korea’s real gross domestic product (GDP) last year.

The analysis reflects the amount of money that would be required to be diverted from production infrastructure, welfare, and investment budgets to defense spending to prevent a loss of defense capabilities under the assumption that U.S. troops withdraw during the same period.

Additionally, the figure adds potential GDP losses that could occur upon a decline in the country’s sovereign credit ratings due to heightened security risks leading to the outflow of foreign investment funds.

Tom Byrne, president and chief executive officer of the Korea Society, said in an interview with Maeil Business Newspaper that the Korea-U.S. relationship has been resilient in the face of many challenges in both countries and that now, it is transforming into a mutually beneficial relationship that is symbiotic and innovative.