Defense

Trump sends South Korea a $1 billion invoice for THAAD

US President Donald Trump said South Korea would have to pay US$1 billion in expenses for the THAAD missile defense system deployment, a position he said he had informed the South Korean government of.

The demand is expected to trigger some controversy, with the US’s calls for Seoul to pay a hefty price tag on the THAAD deployment coming on the heels of a surprise delivery of components to make the deployment a fait accompli before a new South Korean administration takes office next month.

Trump also blasted the South Korea-US Free Trade Agreement (KORUS FTA) as a “horrible” deal and declared it should be either renegotiated or terminated. With this, the Trump administration is lobbing two grenades at the alliance simultaneously - demanding Seoul pay up on THAAD and renegotiating or terminating the KORUS FTA - in a move that focuses on US interests while ignoring the economic retribution South Korea is suffering from China over THAAD.