South Korea: Background and U.S. Relations

South Korea: Background and U.S. Relations

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August 13, 2014
South Korea: Background and U.S. Relations
Overview1
Since late 2008, relations between the United States and
South Korea (known officially as the Republic of Korea, or
ROK) arguably have been at their most robust since the
formation of the U.S.-ROK alliance in 1953. Under South
Korean President Park Geun-hye, who was inaugurated in
February 2013, Seoul and Washington have tightly
coordinated their North Korea policies amidst Pyongyang’s
various provocations, charm offensives, and internal unrest.
Over the past two years, Washington and Seoul have
updated and expanded alliance cooperation. South Korea
also took the first steps toward a possible entry into the
U.S.-led Trans-Pacific Partnership (TPP) free trade
agreement negotiations, which would build on the 2011
United States-Korea Free Trade Agreement (KORUS
FTA). In 2013, the Obama and Park governments agreed
to—and Congress in 2014 supported—a two-year extension
of a civilian nuclear energy cooperation agreement, now set

to expire in 2016.
alliance, though there have been some delays in
implementation. During President Obama’s visit to Seoul in
Despite these developments, Park has hinted at policy
April 2014, the two states agreed to delay for the second
moves that could test bilateral ties, including possible
time a 2007 agreement to transfer wartime operational
cooperation with North Korea in some areas, a proposal for
control (Opcon) from a U.S. commander to a Korean
South Korea to reprocess spent nuclear fuel and enrich
commander, citing the North Korean threat and needed
uranium, and resisting many types of bilateral cooperation
improvements to military interoperability. The two states
with Japan unless Tokyo addresses differences over
also are reviewing the ongoing relocation of U.S. armed
historical issues concerning the 1910-1945 period when
forces from bases near the de-militarized zone (DMZ)
Imperial Japan seized and governed the Korean Peninsula.
bordering North Korea to bases farther south.
South Korea also hesitates to take steps it perceives China
could view as antagonistic, and mistrusts Japan’s efforts to
North Korea Policy Coordination
expand its military capabilities.
U.S.-South Korea Security Relations
Since 2009, in the wake of North Korean provocations
including a long-range ballistic missile test and the
country’s second nuclear test, Washington and Seoul have
The United States - South Korea alliance is established
forged a joint approach toward North Korea. In essence, the
under a 1953 Mutual Defense Treaty. Under the treaty, the
approach—which many have called “strategic patience”—
United States is committed to help South Korea defend
contains elements of both pressure and engagement. They
itself, particularly against any aggression from the North.
include: keeping the door open to multilateral talks (called
South Korea is included under the U.S. “nuclear umbrella”
the Six-Party Talks) over North Korea’s nuclear program
(also known as “extended deterrence”), and the United
but refusing to re-start them without North Korea’s
States maintains about 28,500 troops there. South Korea
assurance, backed by “meaningful actions,” that it will take
offsets some of the costs of stationing U.S. armed forces in
“irreversible steps” to denuclearize; encouraging China to
the country. Under a five-year Special Measures Agreement
pressure North Korea to denuclearize; responding to
(SMA) signed in January 2014, Seoul will raise its
Pyongyang’s provocations by tightening sanctions against
contribution in 2014 and then increase its annual payments
North Korean entities; and conducting a series of military
at the rate of inflation.
exercises. President Park has pledged to retaliate militarily
if North Korea attacks the South. In 2013, Seoul and
For the past decade, the United States and South Korea
Washington ironed out a new counter-provocation plan to
have been taking steps to transform and modernize the
adapt both to the new threats envisioned from North Korea

1
and to South Korea’s new willingness to retaliate.
See also CRS reports on U.S.-South Korea relations
(R41481), the United States-Korea Free Trade Agreement
Park has called for creating a “new era” on the Korean
(RL34330), and U.S.-North Korea relations (R41259).
Peninsula by building trust between North and South
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South Korea: Background and U.S. Relations
.
Korea. However, she has stated that a nuclear North Korea
South Korea’s Regional Relations
“can never be accepted” and that trust-building with
Pyongyang will be impossible if North Korea cannot keep
China’s influence in the region figures into virtually all
its international agreements. An issue for the Obama
aspects of South Korean foreign and economic policy.
Administration and Congress is to what extent they will
Perhaps most notably, North Korea’s growing economic
support—or not oppose—Park’s proposed inter-Korean
and diplomatic dependence on China since the early 2000s
initiatives.
has meant that South Korea increasingly must factor
Beijing’s actions and intentions into its North Korea policy.
Nuclear Energy Cooperation Agreement Chinese President Xi Jinping visited Seoul for a summit
with Park in early July 2014, the first time a Chinese
In April 2013, the United States and South Korea agreed to
president visited South Korea before meeting with the
a two-year extension of their existing bilateral civil nuclear
leader of North Korea. Although Xi and Park described
cooperation agreement, also known as a “123 agreement.”
bilateral ties as having reached an “unprecedented level of
Both the House and Senate adopted the extension by
strategic understanding,” analysts do not expect that South
unanimous consent (P.L. 113-81). It provides a temporary
Korea will prioritize relations with China at the expense of
solution to any disruption in nuclear trade. The extension is
the U.S. alliance.
set to expire in March 2016; its renewal will require
congressional action.
As of mid-2014, South Korea's relations with Japan
continue to deteriorate, primarily due to differences over
Bilateral talks on a longer-term agreement continue. The
how to treat the 1910-1945 period, when Imperial Japan
two states have not yet resolved disagreements over how to
seized and governed the Korean Peninsula. A poor
treat uranium enrichment and spent fuel reprocessing
relationship between Seoul and Tokyo jeopardizes several
technologies in a renewed accord. It is not clear whether the
important U.S. interests, including trilateral cooperation
South Korean government will continue to press the United
over North Korea policy and the ability to respond
States to include a provision that would allow for South
effectively to China. Tense relations also complicate Japan's
Korea to reprocess its spent nuclear fuel. The Atomic
plans to expand its military and diplomatic influence, goals
Energy Act requires U.S. permission before South Korea
the Obama Administration generally supports, and the
can reprocess U.S.-origin spent fuel, including spent fuel
creation of an integrated U.S.-Japan-South Korea ballistic
from South Korea’s U.S.-designed reactors. The United
missile defense system that the U.S. military supports. In
States’ nonproliferation policies discourage the building of
March 2014, President Obama orchestrated the first official
new fuel-making plants in countries that do not already
meeting between Park and Japanese Prime Minister Shinzo
have such plants.
Abe on the sidelines of the Nuclear Security Summit at The
Hague. South Korea's relations with Japan also were a
U.S.-South Korea Economic Relations
major topic of President Obama's April 2014 visits to Seoul
and Tokyo.
South Korea is a major economic partner of the United
States. In 2013, U.S.-South Korea trade was $100 billion in
Party Strength in South Korea’s National Assembly
goods and $30 billion in services. South Korea is the sixth-
(as of July 2014)

largest U.S. trade partner, while the United States is South

Korea’s second-largest trade partner, behind China. Major
U.S. exports include semiconductors, aircraft, and
agricultural products. Major imports include autos and
electrical machinery (including cellular phones). In 2012,
U.S. foreign direct investment (FDI) in South Korea was
$35 billion and South Korean FDI in the United States was
$25 billion.
Both countries sought to deepen their economic relationship
through the 2011 KORUS FTA, which eliminates barriers
to trade and investment. Some companies have expressed
Notes: President Park Geun-hye is a member of the Saenuri (New
concerns over the agreement’s implementation; how the
Frontier) Party. The last nationwide legislative elections were held in
two countries resolve those issues may impact South
April 2012. The next elections are scheduled for April 2016. South
Korea’s potential participation in the Trans-Pacific
Korea’s next presidential election is scheduled for December 2017.
Partnership (TPP) FTA talks. South Korea has expressed
By law, South Korean presidents are limited to one five-year term.
interest in joining the TPP, which potentially would build
on the KORUS FTA, but it has not officially sought entry
Ian E. Rinehart, irinehart@crs.loc.gov, 7-0345
into the TPP negotiations, which currently involve 12
Emma Chanlett-Avery, echanlettavery@crs.loc.gov, 7-7748
nations. While the United States welcomes South Korea’s
Mark E. Manyin, mmanyin@crs.loc.gov, 7-7653
eventual participation, U.S. officials have indicated they
Mary Beth D. Nikitin, mnikitin@crs.loc.gov, 7-7745
will place priority on concluding a TPP agreement among
Brock R. Williams, bwilliams@crs.loc.gov, 7-1157
the current 12 states before agreeing to the entry of any new
Christopher H. Scott, chscott@crs.loc.gov, 7-1883
countries.

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Document Outline

Overview0F