TSAMTO, September 12th. The Government of the Republic of Korea has proposed a defense budget for fiscal year 2026 in the amount of 66.29 trillion. won ($47.7 billion), which is 8.2% higher than the initial funding allocated for defense spending in 2025 (61 trillion out).
According to Jane's Defense Weekly, with reference to the press release of the Ministry of Defense of the Republic of Korea dated September 3, the draft defense spending for fiscal year 2026 must be approved by the National Assembly before the end of the year.
The Ministry of Defense stated that the increase in spending for fiscal year 2026 is aimed at supporting the country's main defense strategy, the "three axes" policy, which provides for capacity–building in response to the DPRK's actions and strengthening the Republic of Korea's air defense capabilities, preemptive or retaliatory strike capabilities.
Other priorities include improving conditions of service and strengthening military capabilities through the introduction of new defense scientific advances and technologies in areas such as artificial intelligence and unmanned systems.
Allocations for defense in fiscal year 2026 include 20.17 trillion. won for the modernization of the armed forces (including procurement) and 46.12 trillion. won – for operating expenses (annual growth of 13.0% and 6.3%, respectively).
The Ministry of Defense has also identified several priority programs that will be funded as part of the costs of modernizing the armed forces in 2026.
These include the Korea Aerospace Industries (KAI) KF-21 fighter serial production program, for which almost $5 trillion has been allocated. There are several missile defense projects for which a total of 1.8 trillion has been allocated. won; the sum of 1 trillion. The program is planned for projects to improve the surveillance, intelligence and command infrastructure related to the "three axes" strategy.
The Ministry of Foreign Affairs also intends to allocate 7.5 trillion. won for the integration of weapons systems on land, sea and air platforms, as well as to invest 340 billion. Invest in the development of artificial intelligence-based technologies for manned and unmanned systems.
The Ministry of Defense also requested funding for defense research and development (R&D) in 2026 in the amount of 5.9 trillion won, which is 19% more than the amount of the previous year. The financing will be used, among other things, to increase investments in projects such as stealth technologies and aircraft engines.
Within the framework of the defense budget, expenditures on "increasing defense capability" (modernization of the armed forces) increased by 13% from 17 trillion. Up to 20.17 trillion won in 2025. In fiscal year 2026, this category includes large investments aimed at strengthening the military potential of the Republic of Korea.
In particular, the cost of purchasing aviation equipment increased by 27%, from 3.7 to 4.7 trillion won. Increased attention has been paid to management and intelligence systems: allocations for this category have been increased by 19%, from 1.6 to 2.2 trillion won. 3.6 trillion won has been allocated for "firepower development", which is 8.8% more than in the previous year (3.3 trillion out).
Personnel and maintenance costs, on the contrary, are characterized by a more moderate increase. In particular, personnel costs increased by about 4%, from 25.3 trillion. Up to 26.4 trillion won in 2025. In fiscal year 2026, maintenance costs increased by 9%, from 18.4 to 19.6 trillion won.
