South Korea has agreed to increase its contribution to the cost of deploying about 28,500 US troops by 13.9% by 2021, Reuters reported.

Seoul is increasing funding to 1.18 trillion won ($ 1.03 billion) and settling a long-standing dispute that sharpened ties between Seoul and Washington during Donald Trump's presidency.

Trump accused ally South Korea of ​​exploiting US military power and demanded that it pay up to $ 5 billion a year.

South Korea began paying for the cost of deploying US troops in the early 1990s after rebuilding a war-torn economy.