South Korea did not have any prior knowledge that the US might charge it for the deployment of a new missile shield, Cheong Wa Dae said Tuesday, as controversy escalated here over US President Donald Trump’s surprise remark last week about possibly billing Korea $1 billion for the system, which the allies said is now “operational” with “initial capability.”

The presidential office’s clarification came in response to a local report that claimed that a transition team for then President-elect Trump had sent a document to Seoul in December to propose bilateral talks over the cost of deploying a Terminal High Altitude Area Defense battery here.

The Ministry of National Defense, in a separate press meeting, called the report “baseless.”

“The report is simply not true,” Defense Ministry spokesperson Moon Sang-kyun said. “I have confirmed it myself after speaking to the minister (about the issue). We have never received such a request or suggestion.”

The Presidential National Security Office, which earlier this week said it “reaffirmed” the US’ pledge to cover the entire cost of maintaining and operating THAAD during the talk between its chief Kim Kwan-jin and his counterpart H.R. McMaster, also said the report is “utterly baseless.”

After deploying launchers, a radar and other supporting elements to the planned battery site in Seongju, North Gyeongsang Province, THAAD has become “operational” with “initial capability” to intercept missiles from North Korea, according to the South Korean and US militaries Tuesday.

Citing an unidentified government source, local daily Hankook Ilbo earlier reported that Cheong Wa Dae had received a request from Trump’s transition team in December to pay for the cost of stationing the battery for THAAD.

Despite the request, Cheong Wa Dae had proceeded with the deployment of THAAD, sending its security chief Kim to the US, where he met with former national security adviser Michael Flynn in January and with the current adviser H.R. McMaster in March, the report added

Noting that Kim visited the US during former President Park Geun-hye’s suspension from power upon her parliamentary impeachment last December, the report claimed Kim felt compelled to complete the THAAD deployment before the May 9 election, resulting in Washington demanding financial burden from Seoul in return.

The report came amid growing pushback in South Korea against the THAAD deployment as the Trump administration has increased pressure against Seoul to pay for the platform, hinting at a renegotiation of a bilateral deal.

“We should not decide whether to deploy THHAD right now. We have to defer it to the next government and use it as a negotiating chip against the US,” said Rep. Woo Sang-ho, floor leader of the Democratic Party of Korea, whose presidential candidate Moon Jae-in is leading the race for Tuesday’s presidential election.

The floor leader, however, said they do not have a plan to take legal action against senior foreign and defense officials involved with the THAAD deployment, refuting the Hankook Ilbo report that the party will press charge against the officials, including Security Chief Kim and Defense Minister Han Min-koo.

The central-left party had vowed to seek a parliamentary hearing in May to determine whether the previous Park administration, which decided to deploy THAAD in July last year, violated domestic laws or struck a secret deal during the negotiation with the US over the deployment.

By Yeo Jun-suk (jasonyeo@heraldcorp.com)