South Korea and the United States are expected to begin senior-level negotiations this month to renew a cost-sharing agreement for American troops stationed in the South, diplomatic sources here said Thursday.

Some 28,500 U.S. troops are stationed in South Korea under a mutual defense treaty aimed at deterring potential aggression from North Korea. The agreement, last revised in 2008, will expire at the end of this year.

“South Korea and the U.S. may launch their first talks soon, as the both sides have recently named their chief negotiators for the talks,” said a senior government official.

While discussing the timeline for the talks to renew the Special Measures Agreement the two sides are mulling holding their first meeting within this month in consideration of required domestic procedures for its renewal.

The planned talks are cited as one of the key bilateral issues facing Seoul’s new government.

Under a bilateral agreement, South Korea offset the cost of stationing U.S. forces in the South by providing the U.S. with 836 billion won ($760 million) last year.

In combination with that sum, other compensation outside the agreement provides for about 40-45 percent of the total non-personnel costs for the U.S. troops.

A recent report released by the U.S. Congressional Research Service said, “Pentagon officials called for South Korea to increase its share to at least 50 percent.”

In another report drawn up by the U.S. Department of Defense and presented to Congress in 2004, South Korea earmarked 0.16 percent of its gross domestic product as of 2002, higher than Japan’s 0.13 percent and 0.07 percent in Germany.

“Taking public sentiment and the necessary ratification process by the National Assembly into account, it would not be easy for Seoul to accept the United States’ request,” another government official said, requesting anonymity.

Officials here have said South Korea will try to reach an agreement with the U.S. to set the costs at “the most reasonable level.”

The U.S. has maintained a military presence in South Korea since the 1950-53 Korean War, which ended in a cease-fire, leaving the two Koreas technically at war. (Yonhap News)