"We stressed that the negotiations should be made within the SMA framework and that a fair, reasonable and mutually acceptable agreement should be reached in a way that strengthens the South Korea-US alliance and the allies' defense posture," the ministry said.

The comment suggests the two sides remain far apart, with the US reportedly demanding a fivefold increase in Seoul's contribution to $5 billion and the South refusing to buckle to what it sees as an unreasonable demand.

The previous round of negotiations in Seoul last month was cut short after South Korea apparently balked at the demand. This week's agreement to hold another round of talks later this month also suggests a new deal is unlikely before the current pact expires at year's end.

The US is reportedly seeking to change the framework of the cost-sharing pact to create new clauses in an effort to have the South shoulder more of the costs for the upkeep of about 28,500 American troops stationed in the country.

The current SMA requires South Korea to pay $870 million for Korean civilians hired by US Forces Korea, the construction of military facilities and other forms of support.

The Trump administration has reportedly asked that under the new deal South Korea also cover expenditures related to supporting American troops' families and conducting combined military exercises. (Yonhap)