South Korean and U.S. officials opened consultations Friday to finalize their plan to relocate the American military command in the Yongsan district of Seoul southward.

Last month, the allies agreed to move the U.S. Yongsan Garrison to Pyeongtaek, about 70 kilometers south of Seoul, by 2007, in a landmark decision that will end the half-century-long U.S. military presence in the heart of the Korean capital.

However, the two sides continue to maintain several differences on the transfer, including how to cover the costs. Under a previous accord in 1990, South Korea was to bear all expenses of the move, estimated at around US$3-$4 billion.

South Korean activists argue that the 1990 accord should be scrapped because it contains several other clauses they consider unfair.

The two days of talks are expected to handle other issues, such as the responsibility for guarding the southern part of the border truce village of Panmunjeom.

The two sides must agree on whether South Korea will take over sole responsibility for guarding the Joint Security Area (JSA).

The JSA is the only location along the 248-kilometer-long border currently guarded by the U.S.-led United Nations Command. The area's security forces are composed of 350 South Korean and 250 American troops.