According to sources on November 16, the U.S. government informed South Korea in August this year that it would terminate the "non-recurring cost" waiver policy applied to intergovernmental Foreign Military Sales (FMS).

Analysts note that this move will inevitably raise South Korea's financial burden, especially as Seoul has pledged to buy more U.S. weapons.

The "non-recurring costs" refer to initial expenses such as research, development, design, and testing incurred by U.S. defense contractors in weapon production.

Under the U.S. Arms Export Control Act, the Pentagon must charge purchasing nations these costs when selling certain weapons through FMS, as their development and production are typically funded by American taxpayers.

However, the U.S. Department of Defense (DoD) has historically waived these fees under certain conditions—such as strategic considerations for key allies or to maintain competitiveness in international arms bidding.

Previously, South Korea enjoyed this exemption, being treated as an ally on par with NATO members.

Yet, the Trump administration notified South Korea around August that the waiver would no longer apply. Similar notices were reportedly sent to other U.S. allies in the Asia-Pacific region, including Japan and Australia, as well as NATO partners.

Analysts suggest this policy shift reflects Trump’s transactional approach to alliances, particularly his view that certain allies have long maintained excessive trade surpluses with the U.S.

Sources estimate that the waiver previously saved South Korea about 5% on arms procurement costs. Its removal will now increase financial pressure on Seoul’s military acquisitions.

When questioned by media, the DoD declined to comment directly, stating only that inquiries should be directed to the South Korean government.

Notably, during talks on October 29, South Korea pledged to purchase $25 billion worth of U.S. military equipment by 2030.

On November 14, South Korean President Lee Jae-myung announced the finalization of a joint fact sheet on bilateral tariff and security negotiations with the U.S. The document includes the $25 billion arms procurement commitment, along with plans to raise defense spending to 3.5% of GDP and provide a $33 billion support package for U.S. troops stationed in South Korea.