South Korea has finalized its national defense budget for 2026 at KRW 65.8642 trillion (approximately $44.7 billion), marking a 7.5% increase over the previous year’s allocation, the Ministry of National Defense (MND) announced on December 3. The increase represents the country’s most significant year-on-year rise since 2019, when defense spending also grew by 8.2%.
The approved figure is slightly lower than the government’s initial proposal, after the National Assembly cut KRW 430.5 billion during budget deliberations. Despite the reduction, the MND emphasized that there would be no impact on operational readiness or major defense programs.
According to defense officials, the reduction primarily reflects realistic assessments of personnel numbers and project progress.
“The salaries of non-commissioned officers and civilian personnel were reduced because the initial plan accounted for more staff than are currently serving,” an official said. “Some capital project budgets were also trimmed based on projected bid prices falling below allocated amounts.”
The ministry added that such adjustments are routine and do not hinder overall defense operations for the coming year.
While certain personnel and project allocations were reduced, lawmakers approved new increases in several welfare and capability programs:
Duty pay for service members has been raised to KRW 30,000 ($20) per weekday and KRW 100,000 ($68) per holiday, bringing rates in line with civil servant compensation.
Moving allowances will now cover two uses of ladder trucks per relocation—an important change given the frequent transfers faced by military families.
A new leadership stipend will provide KRW 50,000 ($34) per month to department heads and KRW 30,000 ($20) to personnel in single-command posts.
The drone warfare training program, heavily promoted by Defense Minister Ahn Kyu-baek, received a major expansion—from KRW 20.5 billion to KRW 33 billion. The added funds will support the mass procurement of commercial training drones and the training of instructors, with the ambitious goal of preparing 500,000 personnel for drone-related operations.
The 2026 budget divides spending into two major areas:
Force operations: KRW 45.8989 trillion ($31.2 billion), up 5.8%
Capability and force development: KRW 19.9653 trillion ($13.5 billion), up 11.9%
One of the largest increases is dedicated to strengthening the Korea Three-Axis System, the country’s comprehensive strategy to counter North Korea’s nuclear and missile threats. This category received KRW 8.8387 trillion ($6 billion), a substantial 21.3% increase.
Kill Chain (pre-emptive strike capabilities): KRW 5.2639 trillion ($3.5 billion), with funding for the KF-21 fighter’s initial production phase
Korea Air and Missile Defense (KAMD): KRW 1.8126 trillion ($1.2 billion)
Korea Massive Punishment and Retaliation (KMPR): KRW 712.1 billion ($484 million)
Surveillance, reconnaissance, and C2 systems: KRW 1.0501 trillion ($713 million)
South Korea is also accelerating indigenous defense science and technology. Defense R&D funding will rise by 19.4% to KRW 5.8396 trillion ($3.9 billion), underscoring the country’s push to strengthen local innovation amid evolving threat environments.
The steady upward trajectory of South Korea’s defense spending reflects continued concerns over North Korea’s advancing weapons programs, as well as broader regional security challenges including U.S.–China competition and rising instability in the Indo-Pacific.
By prioritizing high-tech capabilities, indigenous development, and improved support for service members, Seoul aims to enhance readiness while modernizing its military posture.
With the 2026 budget now approved, the MND says it is positioned to implement next year’s operational, procurement, and training plans without disruption—maintaining what officials describe as a “robust and future-ready defense posture” for the Korean Peninsula.
