TREATIES AND OTHER INTERNATIONAL ACTS SERIES 05-706 

________________________________________________________________________ 

DEFENSE 

 Agreement Between the 

UNITED STATES OF AMERICA 

and the REPUBLIC OF KOREA 

Signed at Seoul June 9, 2005 

 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
REPUBLIC OF KOREA 

Defense 

 Agreement signed at Seoul June 9, 2005; 

 Entered into force July 6, 2005. 
AGREEMENT BETWEEN

THE UNITED STATES OF AMERICA AND

THE REPUBLIC OF KOREA

CONCERNING SPECIAL MEASURES RELATING TO

ARTICLE V OF THE AGREEMENT UNDER ARTICLE IV

OF THE MUTUAL DEFENSE TREATY BETWEEN

THE REPUBLIC OF KOREA AND

THE UNITED STATES OF AMERICA REGARDING FACILITIES

AND AREAS AND THE STATUS OF UNITED STATES ARMED

FORCES IN THE REPUBLIC OF KOREA
The United States of America and the Republic of Korea (hereinafter referred to as

"the Parties") have agreed to take the following special measures relating to Article V of

the Agreement under Article IV of the Mutual Defense Treaty between the United States

of America and the Republic of Korea regarding facilities and areas and the status of

United States Armed Forces in the Republic of Korea (hereinafter referred to as "the

Status of Forces Agreement"), signed at Seoul on July 9, 1966, as amended, which sets

forth the principles on the sharing of expenditures incident to the maintenance of the

United States Armed Forces in Korea:

Article I

The Republic of Korea shall bear, for the duration of this Agreement, as a special

measure relating to Article V of the Status of Forces Agreement, an equitable part of the

expenditures for the employment of Korean employees of the United States Armed Forces

in Korea and of other expenditures associated with the stationing of the United States

Armed Forces in Korea. The contribution of the Republic of Korea shall be categorized

into Labor Cost Sharing, Republic of Korea Funded Construction, Combined Defense

Improvement Projects and Logistics Cost Sharing.

Article II

The duration of this Agreement shall be two years. The cost-sharing contribution of

the Republic of Korea for 2005 is 680.4 billion Korean Won. The second year's

contribution shall be determined by increasing the contribution of 2005 by 3 percent

(escalation rate) plus the inflation rate (Gross Domestic Product Deflator) published by the

Korea National Statistical Office for the year before the previous year. Notwithstanding

the preceding sentence, the United States of America agrees to waive for 2006 the

escalation and inflation increases. Each year's Labor Cost Sharing Contributions shall be

made in three equal payments on or before April 1, June 1 and August 1 of that year.

Republic of Korea Funded Construction payments shall be made in two equal installments

with 50 percent paid on March 1 of the program year and 50 percent paid one year later
(March 1). Implementation of this Agreement shall be in accordance with a separate

implementation arrangement between the concerned authorities of the Parties. Contributions

shall consist of cash support for Labor Cost Sharing as well as a certain proportion of

Republic of Korea Funded Construction, and in-kind support for Combined Defense

Improvement Projects, Logistics Cost Sharing and a certain proportion of Republic of

Korea Funded Construction.

All materials, supplies, equipment and services provided as part of the in-kind

contribution shall be exempt from Republic of Korea taxes, or provided on an after-tax

basis. Such materials, supplies, equipment, and services procured by the Government of

the Republic of Korea shall be exempt from special excise taxes and value added taxes.

In the case of value added taxes, the zero rate shall be applied. If taxes are levied

against any such materials, supplies, equipment or services, payment of such taxes shall

not be made from cost-sharing funding.

Article III

This Agreement shall enter into force upon exchange of written notification by the

Parties that their respective domestic legal procedures necessary for the entry into force of

this Agreement have been completed with effect from January 1, 2005, and shall remain

in force until December 31, 2006.

Article W

The Parties may consult on all matters regarding this Agreement through the Joint

Committee provided for in Paragraph 1 of Article XXVIII of the Status of Forces

Agreement, or through the Joint Cost-Sharing Committee, which is composed of

representatives appointed by the Parties.
Article V

This Agreement may be revised or amended in writing by mutual consent. The

revision or amendment of this Agreement shall enter into force on the date when the

Parties exchange written notifications that their domestic legal requirements for such

revision or amendment have been fulfilled.

IN WITNESS WHEREOF, the undersigned, duly authorized for the purpose, have

signed this Agreement.

DONE at Seoul this 9th day of June 2005, in duplicate in the English and Korean

languages, both texts being equally authentic.

FOR THE UNITED STATES OF AMERICA FOR THE REPUBLIC OF KOREA

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