This photo, provided by Yonhap News TV, shows the defense ministry’s emblem. (Image courtesy of Yonhap)
SEOUL, Dec. 3 (Korea Bizwire) — South Korea approved a defense budget of 65.9 trillion won, or about $44.8 billion, for next year, a 7.5 percent rise as the government moves to reinforce its three-axis deterrence strategy and accelerate the modernization of its armed forces.
The National Assembly passed the 727.9 trillion-won national budget late Tuesday after rival parties reached a last-minute compromise, clearing the way for increased spending on both the economy and national security.
The defense outlay, though slightly below the 8.2 percent increase the Defense Ministry had originally requested, still represents the largest annual expansion since 2019.
“The government and the National Assembly have demonstrated a strong commitment to strengthening national security,” the ministry said in a statement, citing the need to counter North Korea’s advancing nuclear and missile programs and to adapt to shifting global security conditions.
This photo, provided by the defense ministry courtesy of SpaceX, shows a Falcon 9 rocket carrying South Korea’s fifth spy satellite lifting off at Cape Canaveral Space Force Station in Florida on Nov. 2, 2025. (Yonhap)
A significant share of the new funds will support preparations for the eventual transfer of wartime operational control from Washington to Seoul, a longstanding goal that the Lee Jae-myung administration aims to achieve within the president’s five-year term. The budget also includes investments to upgrade service conditions for troops and expand programs tied to future warfare, including artificial intelligence systems and drone operations.
Spending on the country’s three-axis deterrence network—South Korea’s missile defense shield, its preemptive “Kill Chain” strike capability and its large-scale retaliation plan—will rise 21.3 percent to 8.8 trillion won. The government will also increase defense research and development funding by 19.4 percent to 5.8 trillion won, with an emphasis on space-related and other next-generation capabilities.
The increase comes as Seoul seeks greater self-reliance in defense while facing continued pressure from Washington to shoulder more of the security burden. In a joint document following talks between President Lee and President Donald Trump, Seoul pledged to lift defense spending to 3.5 percent of GDP “as soon as possible,” a target welcomed by the United States.
M. H. Lee (mhlee@koreabizwire.com)
