The South Korean government plans to submit a defense budget proposal for 2027 amounting to 73.3 trillion won, an 8.2% increase from this year's budget of 67.7 trillion won. This marks the first time the country's defense budget has surpassed 70 trillion won since its establishment. The increase rate of 8.2% is the highest since 2008.
The budget emphasizes a bold transition from a personnel-centric structure to a technology-driven military, focusing on the early acquisition of key capabilities for the transfer of wartime operational control and the expansion of independent defense capabilities. Notably, the defense improvement budget for weapon purchases and advanced technology development has surged by 13.8% to 22.7 trillion won compared to the previous year.
'Core of Independent Defense' Nuclear Submarine Project Officially Begins... 6.56 Trillion Won Allocated for KF-21 Production
A key highlight is the official launch of the nuclear submarine project. The government will commence this project in 2027 to strengthen the foundation of independent defense based on domestic technology and capabilities. Additionally, production of the KF-21, a core asset for the Air Force, will accelerate. The budget for aircraft projects has been significantly increased by 36.9% to 6.57 trillion won to support initial production and ensure smooth follow-up production.
Furthermore, the military will expedite the operational readiness of critical assets such as medium-altitude reconnaissance unmanned aerial vehicles (MUAV) and long-range surface-to-air missiles (L-SAM) to counter North Korea's nuclear and missile threats. The establishment of a new military information distribution system for the Combined Forces Command and upgrades to communication equipment will greatly enhance the South Korean military's joint operational command capabilities.
Defense AI Budget Increases by 125.6%... Acquisition of Swarm Drones, Kamikaze Drones, and Laser Weapons
The budget for defense artificial intelligence (AI), which is crucial for future warfare, has been increased by 125.6% to 361 billion won from 160 billion won last year. Investments will be made in enhancing the scientific border surveillance system, introducing new AI ground surveillance sensors, and developing unmanned surface vessels and multi-legged robots to perform dangerous missions in place of soldiers.
To address the significant reduction in personnel, a physical AI pilot project will be implemented in transportation and base security areas. Intensive investments will also be made in building drone and counter-drone capabilities, proven effective in the Ukraine war. Research and development of swarm drones will commence, and various types of drones, including medium-range kamikaze drones and small attack drones, will be expanded for diverse missions.
Addressing Decrease in Military Resources... Regular Reserve Forces to Expand by 7,000, Junior Officer Treatment to Improve
In response to the decrease in military resources due to the 'population cliff,' the military will begin restructuring its personnel. To ensure the stable utilization of skilled reserve forces, the number of regular reserve forces will be increased from 3,700 to 7,000. Compensation for reserve training will be raised, a new scientific mobilization training center will be established, and a system for utilizing civilian medical personnel during training will be introduced.
In non-combat areas, the military will pilot the use of civilian personnel to allow active-duty soldiers to focus on their core combat missions. Significant improvements in the treatment and living conditions for junior officers are also included. The basic pay for mid-level lieutenants and sergeants will be increased by 5.9%, and the short-term service incentive for non-commissioned officers will rise from 10 million won to 12 million won. A new 'matching savings program' for short-term service non-commissioned officers will also be established to support savings over three years.
Support for interest on jeonse loans for non-resident officers will be expanded, and the support standard will be raised, while the monthly meal allowance for officers living off-base will increase to 160,000 won. Ongoing improvements to aging barracks and officer accommodations will continue. Training on legal obligations such as gambling and drug prevention, as well as human rights, which were previously handled by officers, will be outsourced to specialized civilian institutions to enhance the effectiveness of education and reduce the burden of preparation.
Investments will also be expanded to foster future defense technologies and the defense industry ecosystem, securing defense technology sovereignty. R&D investments in defense semiconductors will be increased to proactively secure key semiconductor technologies, while efforts will be made to strengthen domestic capabilities in core aviation technologies and enhance future defense technology competitiveness. Support for innovative defense companies will be increased, and assistance for overseas expansion and exports will be expanded to establish a virtuous cycle from technology development to practical application and export. Additionally, to enhance public service experience, personalized military service consultations using AI and digital technologies will be provided, and administrative tasks related to reserve training, previously divided between the Ministry of National Defense and the Military Manpower Administration, will be unified under the Military Manpower Administration to promote a comprehensive management system.
* This article has been translated by AI.
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