South Korea Grows Defence Budget to Cater for Future Threats

Our Bureau - : Oct 19, 2025 - : 5:59 pm

South Korea’s 2026 defense budget proposal submitted to the National Assembly by the Government this September, features an 8.2% increase over the previous year's original budget, growing to 66.2947 trillion won. This is the largest increase in South Korea’s defence budget in seven years since the 8.2% increase in 2019. The significant increase in Government investment in the defense sector is intended to secure capabilities for the transfer of wartime operational control, including strengthening the Korean-style three-axis system, boosting military morale by improving service conditions, and fostering a strong military equipped with defense science and technology, such as Artificial Intelligence (AI) and drones.

The budget for the Korean three-axis system has been increased by 22.3% from KRW 7.2838 trillion in 2025 to KRW 8.9049 trillion in 2026. South Korea is also expanding investments in AI-based manned and unmanned combined combat systems to KRW 340.2 billion as compared to KRW 191.5 billion previously.

The Government has stated that it is prioritising strengthening its response system against North Korean nuclear and Weapons of Mass Destruction (WMD). This is being done by reinforcing the core capabilities of the Korean 3-axis system, including the Kill Chain capability (KRW 5.3065 trillion including the first mass production of KF-21 Boramae), the Korean missile defense capability (KRW 1.8134 trillion including Gwanggaeto-Ⅲ Batch-Ⅱ), the Massive Punishment and Retaliation capability (KRW 739.2 billion including performance improvement of C-130H), and the surveillance, reconnaissance, command and control base capability to support the 3-axis system (KRW 1.0458 trillion including the second air control aircraft),

To allow its military to respond promptly to changes in the future battlefield environment, South Korean is investing in AI-based manned and unmanned combined combat systems (KRW 340.2 billion, including performance improvements to the GOP scientific alert system). Investments in platforms for air, land and sea will be made to the tune of KRW 7.5417 trillion for weapons such as the K-2 Main Battle Tank (MBT) with a domestic power pack and Ulsan-class Batch-Ⅲ. Investments are also being made to cater for the impending induction of the KF-21 with construction of multiple runways and new ammunition depots, to ensure a smooth induction into service of the new fighter type.

South Korea will also proceed with the replacement and electrification of its aging medium-sized standard vehicles (2.5 tons, 5 tons) developed in the late 1970s and currently in operation with new medium-sized standard vehicles. The procurement of the new mid-size standard vehicles will be increased from 216 units ordered in 2025 to 729 units in 2026 worth KRW 150.8 billion.