Seoul: The defense ministry announced on Friday that the previously delayed defense payments, scheduled for completion by the end of 2025, are now being executed in order.
According to Yonhap News Agency, controversy had erupted over the ministry's inability to pay approximately 1.2 trillion won (US$25 million) in defense-related expenditures to military units and defense contractors by the end of the previous year. The undisbursed funds included about 500 billion won earmarked for the defense ministry and 700 billion won intended for the Defense Acquisition Program Administration.
Ministry spokesperson Chung Binna stated at a press briefing, "The (unpaid) funds are being executed as of 9 a.m., and they are being allocated to each military and institution." The ministry had previously claimed that it requested the budget from the finance ministry on time. However, the payment process experienced delays due to a temporary shortage of funds, as demands for spending by government ministries surged at the year-end.
The finance ministry has committed to providing the necessary funds for the 2025 defense expenditures as swiftly as possible within the current week.