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South Korea unveils record KRW 73.28 trillion defense budget amid North Korea threats and Trump alliance doubts
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South Korea announced a record defense budget of KRW 73.28 trillion (approximately $53.9 billion) for the upcoming year, an 8.2% increase. The budget, announced on September 3, 2026, is driven by deepening security concerns regarding North Korea, China, and Russia. It also comes in response to U.S. President Donald Trump's disparaging comments about the U.S.-South Korea alliance and his decision to scale back joint military exercises. The Ministry of National Defense stated the plan focuses on strengthening self-defense capabilities and transitioning to a high-tech-oriented military. Key priorities include preparing for the transfer of wartime operational control (OPCON) from the U.S. by 2029, with related funding up 35%. The budget also allocates significant resources to artificial intelligence, unmanned systems, drone swarms, and counter-drone systems. Major procurement items include the L-SAM air defense system, MUAV reconnaissance drones, the KF-21 Boramae fighter (with funding up nearly 2.5 times to KRW 3.3 trillion), and nuclear-powered submarines. Despite the record spending, the budget represents 2.33% of GDP, below the 3.5% level Trump had pressed for.
Source report
CHRISTCHURCH, New Zealand — South Korea will spend more on its military in the year ahead than ever before. The country's defense budget is set to rise by 8.2%, following the government's announcement of increased expenditure on September 3.
The boosted defense spending of KRW 73.28 trillion (approximately $53.9 billion) comes amid deepening security concerns regarding North Korea, China, and Russia.
U.S. President Donald Trump's irascibility is also encouraging Seoul toward greater self-reliance. Trump posted on social media in August that—based on his good relationship with Kim Jong-un and since Pyongyang had been "unthreatening and respectful"—planned military exercises with South Korea would be scaled back because they were "totally inappropriate and hostile."
Budget Priorities
Announcing the new budget, the Ministry of National Defense (MND) stated the spending plan "focuses on strengthening our military's self-defense capabilities in response to the rapidly changing security environment and reduction of military service resources, and to transition from a troop-centered to a high-tech-oriented military."
The MND outlined eight major priorities for spending:
1. Self-Reliant, Korean-Led Capability
- Funding to help prepare for the transfer of wartime operational control (OPCON) from the United States is up 35%.
- The goal is to complete the OPCON transition by 2029, meaning Seoul would command its own and American troops in the event of a conflict on the Peninsula.
- This requires enhanced capabilities to detect and respond to Pyongyang's threats, especially its nuclear and missile capabilities.
2. Command-and-Control Capabilities
- Slated to be enhanced by a new wartime military information distribution system destined for the joint Combined Forces Command.
3. Addressing the Shrinking Recruit Pool
- South Korea is strengthening its reserves and outsourcing some noncombat duties to the private sector to mitigate a shrinking recruit pool due to an aging population.
4. Unmanned Technologies
- Spending on artificial intelligence and unmanned ground monitoring systems increases.
- The MND will "use drones as the main fighting vehicle for our military," with this budget up almost 20% from last year.
- Investments include drone swarms, reconnaissance drones, various loitering munitions, and an overarching counter-drone system.
- The government will also train half a million "drone warriors."
5. Welfare, Pay, and Housing
- Improved conditions for military personnel.
6. Future Defense Technologies
- Investment to boost sovereignty and high-tech industry, including semiconductors, aviation propulsion, hard-kill lasers, and quantum technologies.
7. Support for Small and Medium-Sized Enterprises
- The government wants to support the entry and growth of SMEs, including heightened export prospects.
8. Major Procurement Programs
- L-SAM long-range air defense system
- MUAV medium-altitude reconnaissance drones
- KF-21 Boramae fighter: Allocation up nearly 2.5 times to KRW 3.3 trillion; production of the first production KF-21s is already under way.
- Nuclear-powered submarines: Nearly KRW 100 billion allocated as the program gathers pace.
Defense Spending as Share of GDP
Trump pressed Seoul to raise defense spending to 3.5% of GDP, but the current budget—despite the record amount—currently represents just 2.33%.
About the Author
Gordon Arthur is an Asia correspondent for Defense News. After a 20-year stint working in Hong Kong, he now resides in New Zealand. He has attended military exercises and defense exhibitions in about 20 countries around the Asia-Pacific region.
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Defense NewsWestern