(MENAFN) Washington has informed Seoul that it will terminate a waiver covering certain development costs for US weapons purchases, according to reports. The decision, reportedly communicated in August, concerns “non-recurring” costs (NCs) — one-time expenses associated with the research, development, or production of defense equipment.

Under the US Arms Export Control Act, the Pentagon typically recovers NCs for weapons sold through the Foreign Military Sales (FMS) program, as taxpayer funds initially cover development or production. While waivers have been granted in the past to support standardization with key allies like South Korea, Japan, and Australia, the new move means South Korea will now face higher costs for its planned $25 billion in US arms purchases by 2030.

Reports indicate that Japan, Australia, and other US partners have also been informed of the waiver’s termination. The Pentagon has declined to comment on the matter.

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