A senior South Korean ruling party legislator said last month that negotiations were deadlocked after the United States made a "sudden, unacceptable" demand that Seoul pay more than 1.4 trillion won per year. In their meeting, Kang said the allies were able to close the gap on the size of South Korea's contribution thanks to goodwill and trust.
South Korea and the US have finally reached an agreement on this year's defense cost sharing deal, with Seoul's financial contribution for the stationing of some 28-thousand American troops on the Korean Peninsula at 9-hundred-24 million USA dollars.
Yonhap news agency reported that South Korea will provide about 1.04 trillion won ($924 million) in 2019.
Malpass also appealed for South Korea's backing for his becoming the next president of the Washington-based lending institution.
"South Korea has to think about the cost involved in keeping the deterrence at the level they would like, while the threat is clearly present", James Kim, worldwide relations expert at the Asian Institute for Policy Studies in Seoul, told Sputnik Monday.
South Korea has agreed to substantially increase its contribution to cover the cost of keeping US troops in that country.
The state-run Radio Pyongyang also reportedly broadcast similar demands that the USA move towards "credible steps and responds with corresponding practical action".
South Korea has hosted American troops since the two countries fought together against the communist-backed North in the 1950-53 Korean War, which ended in an armistice instead of a peace treaty.
When asked about the possibility in an interview with CBS last week, Trump said he has "no plans" to withdraw troops from the peninsula and hasn't even discussed the issue.
Trump surprised Seoul and many of his own aides when he announced after his first summit with North Korea on June 12 that he was suspending joint war games with South Korea, which he called "very expensive" and "provocative". Another W28.55 trillion will be needed for infrastructure, most (W22.66 trillion) to be spent on North Korea.
Timothy Betts, the US State Department plenipotentiary who was present to sign the agreement on the United States' behalf, said the money was a small but important part of the relationship between the two countries.
Seoul contributes around 70 percent to cover the salaries of some 8,700 South Korean employees who provide administrative, technical and other services for the U.S. military.
Late past year, the USA military had warned the South Korean employees on its bases that they may be put on leave from mid-April if no agreement was reached.