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US to end waiver on development costs for South Korea arms buys

SE24 Desk

 Published: 16:20, 16 November 2025

US to end waiver on development costs for South Korea arms buys

The United States has notified South Korea that it will end its long-standing waiver on non-recurring development costs for certain American weapons purchases, Yonhap News reported Sunday. 

Washington reportedly informed Seoul in August that it will begin charging the one-time expenses tied to research, development and production for defense items sold through the Foreign Military Sales program.

Under the US Arms Export Control Act, the Pentagon is required to recoup these costs, though waivers can be granted when doing so supports US strategic interests—such as maintaining equipment interoperability with allies including South Korea, Japan and Australia, or preventing the loss of a potential sale.

South Korea has previously benefited from the waiver, but its removal is expected to increase expenses as Seoul plans to acquire about $25 billion worth of US military equipment by 2030. Japan, Australia and other partners have reportedly received similar notifications. The Pentagon declined to comment.