South Korea says it has agreed to pay more than $876 million this year to share the cost of the U.S. military presence in the country.
A South Korean spokesperson told a news conference Sunday that the deal is 5.8 percent higher than what Seoul paid in 2013.
South Korea has shared the cost of hosting American soldiers - currently around 28,000 - since 1991.
North Korea has for decades criticized the presence of U.S. troops stationed in the South, calling it a major stumbling block for peace talks with Seoul.
Some information for this report was provided by AP, AFP and Reuters.