U.S. DEFENSE BUDGET AND S. KOREA

[Anchor Lead]

The U.S. government has allotted 49 million dollars of its 2021 defense budget for the development of the THAAD system deployed in South Korea. With the environmental impact assessment of the missile defense system yet to be completed, Washington says it has already discussed the cost to be shouldered by Seoul.

[Pkg]

A report detailing the president's budget plan for the U.S. Army's Fiscal Year 2021. It's part of the budget request submitted by Donald Trump to Congress on February 3. The report contains a chapter on the development of the THAAD base in Seongju, South Korea. The construction of facilities needed at the site is estimated at 49 million dollars. According to the U.S. Army the possibility of the host-nation funding the project has been discussed. In other words, Seoul may have to shoulder the burden. It's the first time the cost of THAAD base development in Seongju was mentioned in the U.S. Army's budget. The site used to be a golf course and has no military facilities such as an ammunition depot or security equipment. Seoul has believed so far that Washington would pay for their construction.

[Soundbite] MOON SANG-KYUN(THEN-DEFENSE MINISTRY SPOKESPERSON(MAY 4, 2017)) : "Any new construction on the site of the THAAD base must be funded by the United States."

Some pundits believe the U.S. is trying to raise Korea's share of defense costs to use them in the THAAD base construction. The fact that the budget report breaks down the cost of each item shows the allies may have already discussed the matter during military cost sharing talks.

[Soundbite] PARK WON-GON(PROF., HANDONG GLOBAL UNIVERSITY) : "The U.S. document indicates that the matter has been discussed with South Korea. It also specifies the exact estimated cost. If the military cost sharing agreement is signed, the cost will be included in it, and Korea will have to pay it to the U.S."

The environmental impact assessment in the area where the THAAD system is to be deployed is not complete yet.

[Soundbite] PARK KI-HAK(DIRECTOR, CENTER FOR THE STUDY OF PEACE AND REUNIFICATION) : "It's a serious problem because nothing has been explained to the public about this issue."

An official from Seoul's foreign ministry pointed out the two sides didn't discuss the THAAD base in their defense cost sharing talks.