Seoul has rejected US President Donald Trump’s demand of $1 billion for the Terminal High Altitude Area Defense (THAAD) system Washington is installing in South Korea to counter North’s threats.
Trump called the five-year-old trade pact with South Korea "unacceptable" and said it would be targeted for renegotiation after his administration completes a revamp of the North American Free Trade Agreement (NAFTA) with Canada and Mexico, Trump said in an interview with Reuters.
"It is unacceptable, it is a horrible deal made by Hillary," the Republican Trump said. "It's a horrible deal, and we are going to renegotiate that deal or terminate it."
Asked when he would announce his intention to renegotiate the deal, Trump said: “Very soon. I’m announcing it now.”
“I informed South Korea it would be appropriate if they paid. It's a billion-dollar system," Trump said Friday.
South Korean defense ministry has retorted that there is would be no change to the basic position of the Status of Forces Agreement that governs the US military presence in the nation. South Korea would provide the THAAD site and infrastructure while the US would bear the cost to deploy and operate it.
The first components of the THAAD system have already reached and set up at a former golf course in South Korea. The THAAD system will be operational within days, US officials have said.