A U.S. Army AH-64 Apache shoots rockets over the Rodriguez Live Fire Complex near Pocheon, South Korea, Oct. 30, 2024. (Luis Garcia/Stars and Stripes)

SEOUL, South Korea — South Korea’s National Assembly has approved a new cost-sharing agreement with the United States for stationing roughly 28,500 American troops on the Korean Peninsula, clearing the way for the deal to take effect in 2026.

The assembly voted 173-36 to pass the upcoming Special Measures Agreement, which establishes the financial framework for maintaining the U.S. military presence in South Korea for five years.

The deal follows eight rounds of negotiations this year in Washington, Seoul and Hawaii.

Under the new terms, South Korea will pay $1.1 billion initially and increase its contribution annually in line with proportional changes to its consumer price index. The deal includes a 5% cap on annual increases to shield against sharp rises during economic downturns, according to the South’s Ministry of Foreign Affairs.

The current accord, which went into effect in 2021, required Seoul to pay $1 billion and gradually increase its annual contribution based on its defense budget until the end of 2025.

South Korea’s contributions pay for U.S. military operations, construction projects on American bases, and local workers employed by U.S. Forces Korea.

Recent projects include two barracks at Camp Humphreys, the largest U.S. base overseas, which cost $67 million and began housing 600 soldiers in June.

Cost-sharing negotiations have been contentious in the past. During President-elect Donald Trump’s previous administration, Trump accused South Korea of not paying enough, reportedly demanding as much as $5 billion annually.

Trump said in a 2019 interview with Bloomberg News that South Korea “would be happy” to contribute $10 billion annually for U.S. military assistance.

Negotiations stalled in 2019 over disagreements, forcing South Korea to extend its contribution rate into 2020.