Seoul, Washington launch working-level talks on 5% defense spending target

Korea and the United States have begun working-level talks on increasing Seoul’s defense spending, modeled after a new NATO commitment to raise military budgets to 5 percent of GDP, according to senior officials.

National Security Adviser Wi Sung-lac, left, shakes hands with U.S. Secretary of State Marco Rubio on the margins of the NATO summit in the Netherlands on June 24. [PRESIDENTIAL OFFICE]

Korea and the United States have begun working-level talks on increasing Seoul’s defense spending, modeled after a new NATO commitment to raise military budgets to 5 percent of GDP, according to senior officials.

The talks could shape the agenda for the first summit between President Lee Jae Myung and U.S. President Donald Trump.

Wi Sung-lac, national security adviser to President Lee, confirmed the U.S. request during a briefing with reporters on June 26 after returning from the NATO summit in the Netherlands.

“The United States is making similar requests to several allies, just as it did with NATO,” Wi said. “Korea has also received such a request, and working-level discussions are underway. These issues are currently being reviewed through security consultations.”

National Security Adviser Wi Sung-lac, back row left, poses for a photo with world leaders including U.S. President Donald Trump ahead of a dinner hosted by Dutch King Willem-Alexander and Dutch Queen Maxima on the sidelines of a NATO Summit at Huis ten Bosch Palace in The Hague, Netherlands, on June 24. [REUTERS/YONHAP]

The U.S. Department of Defense publicly stated on June 19 that it expects its global allies — including those in Asia — to meet a new defense spending benchmark of 5 percent of GDP, aligning with NATO’s revised targets. Korea’s current defense budget accounts for about 2.3 percent of GDP based on 2020 figures.

Wi’s remarks were seen as confirmation that Washington had formally conveyed the request to Seoul and that talks were already in progress.

Cost-sharing pressure The proposed increase goes beyond Korea’s existing cost-sharing commitments for U.S. troop deployments under the bilateral Special Measures Agreement (SMA). The SMA covers personnel, logistics and infrastructure costs and has historically limited room for significant increases.

During Trump’s first term, Washington pressed Seoul for a fivefold increase in its SMA contribution, a demand that ultimately failed amid domestic backlash and legal constraints. Observers say the push for a NATO-style spending model is intended to broaden the scope of allied contributions beyond traditional cost-sharing.

President Lee Jae Myung and First Lady Kim Hye Kyung head to board the presidential aircraft at Calgary International Airport on June 17 after wrapping up the G7 Summit. [JOINT PRESS CORPS]

NATO member states recently agreed to increase defense budgets to a combined 5 percent of GDP — 3.5 percent for direct defense and 1.5 percent for related investments — by 2035. The formula is designed to offer flexibility to member states while signaling stronger burden-sharing.

Wi acknowledged the “3.5 + 1.5” structure, adding that Korea has not yet committed to a specific approach. “We are still determining how to respond,” he said.

A more favorable starting point for Korea?

Korea may be better positioned than some NATO countries to meet such targets. Its annual defense budget surpassed 60 trillion won ($44 billion) in 2023. According to the country’s midterm defense plan, spending is projected to grow by an average of 7 percent annually, reaching around 80 trillion won by 2028 — or roughly 3 percent of GDP — and surpassing 100 trillion won in the early 2030s.

Officials are considering allocating the remaining 2 percent gap under the NATO formula through indirect investments in defense-related fields such as basic science, education and critical infrastructure.

Expanding research and development in military technologies and materials is also on the table. This aligns with Korea’s long-term goal of becoming one of the world’s top four defense exporters.

Park Ihn-hwi, an international studies professor at Ewha Womans University, said the country should not accept the 5 percent target at face value.

“NATO members currently spend less than 2 percent of their GDP on defense, while Korea is already contributing more,” he said. “Even if the 5 percent rule is accepted, it would make more sense to focus on increasing R&D [research and development] in areas related to emerging security threats such as Russia and the Middle East. That would maximize mutual benefits.”

During his trip, Wi also met with U.S. Secretary of State and National Security Adviser Marco Rubio. The two agreed on the urgency of holding a Lee-Trump summit soon.

“We are currently in discussions on trade and security matters,” Wi said. “There is shared understanding that these talks should be consolidated to prepare for a successful summit.”

His comments suggest that tariffs and defense spending are likely to be the two main agenda items and that the issues may be linked in the broader context of alliance management.

Translated from JoongAng Sunday using generative AI and edited by Korea JoongAng Daily staff. BY YOO JI-HYE, LEE YU-JUNG [park.eunjee@joongang.co.kr]