Washington to end development cost waiver for US arms purchases to Seoul: Report
The U.S. has informed South Korea that it will end a waiver on development costs for certain U.S. arms purchases, potentially raising costs for Seoul's planned $25 billion defense spending by 2030, Yonhap News reports. The Pentagon declined to comment.
- Americas
- Anadolu Agency
- Published Date: 10:11 | 16 November 2025
Washington informed South Korea of its decision to end a waiver for development costs on certain US arms purchases, Yonhap News reported Sunday, citing sources.
The US reportedly told Seoul in August that it would no longer waive "non-recurring" costs (NCs), one-time expenses tied to research, development or production of certain defense equipment.
Under the US Arms Export Control Act, the Pentagon must recover the NCs for weapons sold through the Foreign Military Sales (FMS) program, as the US covers the initial costs with taxpayer money to develop or produce weapons.
The law allows the costs to be waived in specific cases, such as advancing US interests in standardizing equipment with allies like South Korea, Japan and Australia, and avoiding a situation in which the charge would result in the loss of the weapons sale.
In the past, South Korea received the NC waiver, but its removal will raise costs as South Korea plans to spend $25 billion on US military equipment by 2030.
Japan, Australia and other nations have also reportedly been notified about the waiver's end.
The Pentagon declined to comment.
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