(MENAFN) Washington has notified South Korea of its choice to conclude a waiver covering development expenses on specific American weapons acquisitions, according to a news agency, which cited unnamed insiders on Sunday.

The United States reportedly informed Seoul in August that it would stop exempting “non-recurring” costs (NCs), which refer to single-instance charges associated with the research, creation or manufacturing of designated defense systems.

In line with the US Arms Export Control Act, the Department of Defense is obligated to recoup NCs for armaments provided through the Foreign Military Sales (FMS) framework, as these initial outlays—funding the innovation or fabrication of weaponry—are borne by American taxpayers.

The statute permits waivers in particular circumstances, including situations that support U.S. objectives such as harmonizing military hardware with partners like South Korea, Japan and Australia, or preventing scenarios in which imposing the fee might jeopardize a prospective arms transaction.

Although South Korea previously benefited from this NC exemption, its cancellation will escalate expenses, especially as Seoul aims to allocate $25 billion toward U.S.-made defense assets by 2030.

Japan, Australia and additional countries have also been reportedly alerted regarding the cessation of this waiver.

The Pentagon refused to provide any remarks.

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