U.S.-South Korea Relations Mark E. Manyin, Coordinator Specialist in Asian Affairs Emma Chanlett-Avery Specialist in Asian Affairs Mary Beth D. Nikitin Specialist in Nonproliferation Ian E. Rinehart Analyst in Asian Affairs Brock R. Williams Analyst in International Trade and Finance October 8, 2015 Congressional Research Service 7-5700 www.crs.gov R41481 U.S.-South Korea Relations Summary Overview South Korea (known officially as the Republic of Korea, or ROK) is one of the United States’ most important strategic and economic partners in Asia, and since 2009 relations between the two countries arguably have been at their most robust state in decades. Members of Congress tend to be interested in South Korea-related issues for a number of reasons. First, the United States and South Korea have been treaty allies since the early 1950s. The United States is committed to helping South Korea defend itself, particularly against any aggression from North Korea. Approximately 28,500 U.S. troops are based in the ROK and South Korea is included under the U.S. “nuclear umbrella.” Second, Washington and Seoul cooperate in addressing the challenges posed by North Korea. Third, the two countries’ economies are closely entwined and are joined by the Korea-U.S. Free Trade Agreement (KORUS FTA). South Korea is the United States’ sixth- largest trading partner and the United States is South Korea’s second-largest trading partner. South Korea has taken the first steps toward possible entry into the U.S.-led Trans-Pacific Partnership (TPP) free trade agreement negotiations. Strategic Cooperation and the U.S.-ROK Alliance Dealing with North Korea is the dominant strategic concern of the U.S.-South Korean relationship. Under South Korean President Park Geun-hye, Seoul and Washington have maintained tight coordination over North Korea policy, following a joint approach that contains elements of pressure and engagement. In response to Pyongyang’s perceived intransigence and provocative behavior, Washington and Seoul have placed significant emphasis on the harder elements of their approach. Some critics say that the Obama Administration’s policy applies insufficient pressure on North Korea to change its behavior, while others argue that it provides insufficient incentives. The Obama Administration has supported Park’s proposals for confidence-building measures with and humanitarian assistance to Pyongyang. She has linked larger-scale aid to progress in the denuclearization of North Korea, the United States’ top priority. Thus far, North Korea generally has resisted Park’s outreach. Since 2009, the United States and South Korea have accelerated steps to reform the U.S.-ROK alliance. Washington and Seoul have initiated plans to relocate U.S. troops on the Korean Peninsula and boost ROK defense capabilities. Some Members of Congress have criticized the cost of the relocation, and Park and her predecessor have slowed defense budget increases. Provocations from North Korea have propelled more integrated bilateral planning for responding to possible contingencies, for instance by adopting policies to respond more swiftly and forcefully to attacks and by discussing improvements to the two countries’ respective missile defense systems. In a related development, in 2014 the United States and South Korea agreed to delay for the second time a 2007 agreement to transfer wartime operational control (Opcon) from U.S. to ROK forces. On broad strategic matters in East Asia, while South Korean and U.S. perspectives overlap, there are areas of significant differences. For instance, South Korea often hesitates to take steps that antagonize China and has shown mistrust of Japan’s efforts to expand its military capabilities. Nuclear Cooperation Agreement The United States and South Korea signed a new civilian nuclear cooperation agreement in mid- June 2015 to replace the existing agreement, which entered into force in 1974. The agreement, which provides the legal foundation for nuclear trade between the countries, automatically will go Congressional Research Service U.S.-South Korea Relations into effect in the fall of 2015 unless Congress disapproves it, a move that would be subject to presidential veto. Congressional Research Service U.S.-South Korea Relations Contents Major Developments in the First Nine Months of 2015 .................................................................. 1 The Overall State of U.S.-South Korea Relations ..................................................................... 1 President Park to Visit Washington in Mid-October ................................................................. 1 Park Geun-hye’s Political Standing........................................................................................... 2 Inter-Korean Relations .............................................................................................................. 3 South Korea-China Relations: The Park-Xi Summit ................................................................ 4 South Korea-Japan Relations Stabilize, but Remain Tense ....................................................... 6 South Korea and the TPP .......................................................................................................... 7 South Korea Joins the AIIB ....................................................................................................... 7 Nuclear Energy Cooperation Agreement .................................................................................. 8 Background on U.S.-South Korea Relations ................................................................................... 8 Overview ................................................................................................................................... 8 Historical Background ........................................................................................................ 9 North Korea in U.S.-ROK Relations ....................................................................................... 10 North Korea Policy Coordination ..................................................................................... 10 Inter-Korean Relations and Park Geun-Hye’s “Trustpolitik” ............................................ 11 Deterrence Issues .............................................................................................................. 12 Security Relations and the U.S.-ROK Alliance ....................................................................... 13 Upgrades to the Alliance ................................................................................................... 13 South Korea’s Regional Relations........................................................................................... 19 South Korea-Japan Relations ............................................................................................ 20 South Korea-China Relations ........................................................................................... 22 Economic Relations ................................................................................................................ 23 South Korea’s Economic Performance ............................................................................. 26 Currency Issues ................................................................................................................. 28 Nuclear Energy and Non-Proliferation Cooperation ............................................................... 28 Bilateral Nuclear Energy Cooperation .............................................................................. 28 South Korean Nonproliferation Policy ............................................................................. 31 South Korean Politics .............................................................................................................. 32 A Powerful Executive Branch ........................................................................................... 34 Political Parties ................................................................................................................. 34 South Korea’s MERS Outbreak .............................................................................................. 35 Figures Figure 1. Map of the Korean Peninsula ........................................................................................... 5 Figure 2. USFK Bases After Realignment Plan Is Implemented .................................................. 16 Figure 3. South Korea’s Real GDP Growth, 2007-2014 ............................................................... 27 Figure 4. Party Strength in South Korea’s National Assembly ..................................................... 33 Tables Table 1. Annual U.S.-South Korea Merchandise Trade, Selected Years ....................................... 24 Congressional Research Service U.S.-South Korea Relations Contacts Author Contact Information .......................................................................................................... 36 Congressional Research Service U.S.-South Korea Relations his report contains two main parts: a section describing recent events and a longer background section on key elements of the U.S.-South Korea relationship. The end of the T report provides a list of CRS products on South Korea and North Korea. For a map of the Korean Peninsula, see Figure 1 below. The report identifies South Korean individuals by using their last name first. For a brief, two-page summary of U.S.-South Korea