U.S. Defense Secretary Pete Hegseth on Tuesday praised South Korea’s decision to raise military spending, saying the move would help the country take a greater role in defending itself from North Korean threats and strengthen the decades-old U.S.-South Korea alliance.

Speaking after annual security talks with South Korean Defense Minister Ahn Gyu-back in Seoul, Hegseth said he was “greatly encouraged” by South Korea’s commitment to increase defense investments. He said the additional spending would enhance Seoul’s ability to lead its conventional deterrence and defense against Pyongyang.

The meeting came as South Korean President Lee Jae Myung urged parliament to approve an 8.2% increase in next year’s defense budget to modernize weapons systems and reduce reliance on the United States.

“We face, as we both acknowledge, a dangerous security environment, but our alliance is stronger than ever,” Hegseth said.

He added that both sides agreed to expand cooperation on maintaining and repairing U.S. warships in South Korea, taking advantage of the country’s advanced shipbuilding industry to ensure “our most lethal capabilities remain ready to respond to any crisis.”

While reaffirming that the alliance’s main focus remains deterring North Korea, Hegseth said the partners would also consider “regional contingencies” as part of a broader strategy to maintain stability in Asia.

The two allies have been discussing ways to integrate U.S. nuclear capabilities with South Korean conventional weapons under a “conventional-nuclear integration” framework. South Korea, which remains under the U.S. “nuclear umbrella,” has repeatedly said it will not seek its own nuclear weapons program.

Ahn dismissed speculation about Seoul pursuing nuclear arms or redeploying U.S. tactical nuclear weapons, emphasizing South Korea’s continued commitment to the Nuclear Non-Proliferation Treaty.

The talks ended without a joint statement — an uncommon outcome for the annual meeting — but Hegseth said there were “no differences” between the allies, just “a bigger deal which takes a little more time.”

The discussions took place amid renewed tensions on the Korean Peninsula. South Korea’s military reported that North Korea fired about 10 artillery rounds into western waters Monday afternoon, shortly before Hegseth arrived for his two-day visit. Similar firings were reported two days earlier, ahead of a summit between President Lee and Chinese President Xi Jinping, where Lee urged Beijing to help bring Pyongyang back to talks.