South Korea ramps up defence spending to counter North Korea threats

The South Korean government is seeking a 3.6 per cent increase in defence spending for next year to enhance its capabilities against evolving North Korean military threats.

The Cabinet has endorsed a proposed budget of $46.3 billion (61.59 trillion won) for 2025, up from $44.7 billion  (59.42 trillion won) this year, Caliber.Az reports citing Korean media.

The government will submit this proposal to the National Assembly on September 2. If approved, it would mark the first time South Korea's defence budget surpasses $45.1 billion USD (60 trillion won). The proposed increase in defence spending slightly exceeds the total government spending increase of 3.2 per cent.

"Despite the government's stringent approach to sound fiscal policy, it has prioritized the defence sector by considering the grave internal and external security situation," the ministry stated in a release.

Of the proposed budget, the ministry plans to allocate $13.6 billion (18.07 trillion won) for weapons acquisitions and other projects to strengthen defence capabilities, reflecting a 2.4 per cent year-on-year increase. Another $32.7 billion (43.52 trillion won) is earmarked for military operating costs, a 4.2 per cent rise from this year.

The ministry intends to allocate $4.6 billion (6.16 trillion won) for enhancing the "three-axis" deterrence system and other related projects, including $2.4 billion (3.2 trillion won) for Kill Chain preemptive strike assets such as F-35A stealth fighters. Last December, South Korea signed an agreement with the US to purchase 20 additional F-35As.

The budget proposal also includes funds for Korean Air and Missile Defense projects, such as the production of the Long-range Surface-to-Air Missile system, and for Korea Massive Punishment and Retaliation projects, which encompass upgrades to special operations helicopters.

Additionally, the ministry seeks to spend over $760 million (one trillion won) next year on the production of the indigenous KF-21 fighter jet, which is slated to complete development in 2026. In June, Korea Aerospace Industries Ltd., South Korea's only fighter jet manufacturer, signed a $1.5 billion (1.96 trillion won) contract with the state arms procurement agency to start producing 20 KF-21s.