Seoul: The defense ministry announced on Tuesday its proposal for an 8.2 percent increase in the 2027 budget. This move aims to accelerate the transfer of wartime operational control (OPCON) from the United States and modernize forces and capabilities in response to a demographic cliff.
According to Yonhap News Agency, the proposal suggests a budget of 73.27 trillion won (US$53.5 billion), an increase of 5.57 trillion won from 67.7 trillion won in 2026. If approved by the National Assembly, this would mark the largest increase in the defense ministry's spending since 2007. The proposed budget would account for 2.33 percent of the projected GDP for next year, up slightly from 2.28 percent this year.
Seoul has plans to raise its defense spending to 3.5 percent of GDP by 2035, aligning with demands from the Donald Trump administration for allies to contribute more to their own defense. The ministry emphasized the focus on strengthening military self-reliance and transitioning to a technology-centered defense structure, adapting to a changing security environment and a dwindling conscript pool.
A key objective of the proposed budget is securing military capabilities necessary for the OPCON transition from Washington, a goal the Lee Jae Myung administration aims to achieve by 2030 or sooner. The ministry intends to invest 21.3 trillion won to meet OPCON transfer conditions, up from 18.6 trillion won for 2026.
The budget will also support acquiring nuclear-powered attack submarines, with Seoul in discussions with Washington under a bilateral trade and security agreement. A significant allocation of 100 billion won has been made for the Jang Bogo N nuclear-powered submarine program, a substantial increase from an initial 20 billion won proposal.
Funding for the KF-21 homegrown fighter jet development has increased sharply, from 1.4 trillion won to 3.3 trillion won, to aid mass production and boost exports of South Korean defense products. The KF-21 program plans to deliver 40 air-to-air capable jets by 2028 under Block-I and 80 Block II units with domestic air-to-ground missiles by 2032.
Efforts to enhance the military's leadership in the South Korea-U.S. Combined Forces Command (CFC) post-OPCON transition include upgrading air-to-ground radio systems and creating a new wartime intelligence network. To counter North Korean nuclear and missile threats, the military plans to expedite medium-altitude unmanned aerial vehicles (MUAV) and long-range surface-to-air missile (L-SAM) systems deployment by late 2027 or 2028.
To address the declining conscript pool, the ministry aims to transition forces to an AI- and unmanned system-driven structure, focusing on drone and anti-drone capabilities. The sectoral budget for forces operations is set at 50 trillion won, a 5.9 percent increase from this year, with 22.7 trillion won for defense capability enhancement, marking a 13.8 percent increase.
Additionally, the military manpower administration sector's budget is set at 524.9 billion won, a 1.4 percent rise from 2026, as per the ministry's proposal.