Seoul, South Korea – South Korea’s National Assembly on Tuesday approved the defense budget for next year, setting it at 65.9 trillion won ($44.8 billion). This represents a 7.5% increase over this year. The increase is part of the country’s efforts to strengthen its three-pronged defense capabilities and build an advanced combat system.
The state’s general budget for next year amounts to 727.9 trillion won, and it was approved after a last-minute agreement was reached between political parties.
Strengthening nuclear deterrence and the three-pronged defense system
The year-on-year increase in the defense budget is the largest since 2019 (when the increase was 8.2%).
In a statement announcing this joint resolve, the Ministry of Defense declared: “The government and the National Assembly expressed their firm determination to strengthen national security… to respond to North Korea’s nuclear and missile threats and the changing international security environment in a timely manner.”
Key areas of spending
The three-pronged deterrence system: The budget for this system against North Korea’s systems increased by 21.3% year-on-year, reaching 8.8 trillion won. The system includes the Korean Air and Missile Defense (KAMD), the “Kill Chain” preemptive strike platform, and the KPR (Killing Retaliation) system.
Research and Development (R&D): The ministry plans to allocate 5.8 trillion won to defense research and development. This represents a 19.4% increase over this year. This is part of its efforts to strengthen its capabilities in modern warfare, including artificial intelligence, drones, and space.
Focus on transferring operational control
The budget will focus on strengthening the response capabilities for the transfer of wartime operational control (OPCON) from Washington to Seoul. South Korea aims to achieve this initiative during President Lee Jae-myung’s five-year term.
The budget will also be used to improve the working conditions of the troops and enhance the army’s future combat capabilities.
In response to US pressure to increase spending
This budget increase comes as South Korea seeks to bolster its self-defense capabilities, amid pressure from Washington to increase defense spending.
In a joint fact sheet following the summit between President Lee Jae-myung and US President Donald Trump, South Korea announced plans to increase its defense spending to 3.5% of GDP as soon as possible. This was welcomed by the United States.
