South Korea and the United States again failed to reach an agreement during their latest round of defense cost-sharing negotiations held in Los Angeles.

Due to their differences, South Koreans employees of U.S. Forces Korea may well face a furlough or unpaid leave starting April 1. 

Seoul's Foreign Ministry on Friday said the two sides agreed to continue talks to quickly reach a mutually acceptable deal, minimize a vacuum in the Special Measures Agreement and contribute to the bilateral alliance and joint defense posture.

This came after negotiations were extended to three days, ending Thursday, with issues lingering over how much Seoul should contribute this year for the upkeep of American troops on the peninsula.

The U.S. State Department said a mutually acceptable agreement will require greater focus and flexibility from South Korea, adding the "gap remains large." 

Seoul's top negotiator Jeong Eun-bo acknowledged the gap but also indicated some progress, saying the two sides are narrowing their differences.