Trends in ROK Defense Budget Growth Rates by Administration The newly approved budget places strategic emphasis on conditions-based wartime operational control (OPCON) transition, improvement of service conditions for troops, and accelerated modernization through AI, drones, and advanced defense technologies. Funding for the Korean Three-Axis System—Kill Chain, KAMD, and KMPR—will rise by more than 20%, while several long-standing demands related to troops’ welfare have also been addressed.

Massive Increase in Defense Capability Enhancement Budget

To support President Lee Jae-myung’s goal of achieving OPCON transition within his term, the government has allocated KRW 19.9653 trillion for force improvement programs. The Three-Axis System—central to deterring North Korea’s nuclear and WMD threats—will receive KRW 8.8387 trillion, up 21.3% from this year’s KRW 7.2838 trillion. Major acquisition programs for optimal ground, naval, and air power will also move forward, including the K2 tank (with a domestic powerpack), Ulsan-class Batch III frigates, and the second batch of aerial refueling tankers, backed by KRW 7.5239 trillion in funding.

R&D Expansion and Space Security Investment

Investment in defense R&D will see a steep rise as well. The government allocated KRW 5.8396 trillion, up 19.4%, while funding for future challenge defense technologies will increase to KRW 349.4 billion, an addition of KRW 99.1 billion. During parliamentary review, lawmakers also approved new funding to establish a Defense Space Certification Center, addressing the current lack of domestic institutions for space system certification and quality assurance. Budgets for the military reconnaissance satellite program and Military Satellite Communication System-III were also increased.

Enhanced Support for Troop Welfare and Daily Operations

The budget for force operations—covering personnel, maintenance, logistics, and troop welfare—has been set at KRW 45.8989 trillion, up 5.8% from this year. Notably, the National Assembly increased or newly added funding for: Duty shift pay

• Household moving expenses, Duty-specific allowances for Army majors and Level-4 civilian officers, Comprehensive health checkups for long-serving personnel. Duty shift pay will jump from KRW 20,000 to 30,000 on weekdays and from KRW 40,000 to 100,000 on holidays. Moving expense reimbursements—previously insufficient to cover frequent relocations—will now include ladder truck fees. Majors and Level-4 civilian officers, previously excluded from overtime and duty allowances, will now receive KRW 50,000 per month (department heads) or KRW 30,000 per month (single-position holders). Troops with more than 25 years of service will receive up to KRW 200,000 for annual comprehensive medical examinations.
  
  

  AI-Driven Military Transformation and Drone Warfare Training Accelerate

  The 2026 budget significantly expands investment in building an AI-enabled future force. The flagship initiative to cultivate “500,000 Drone Warriors” will also accelerate. The National Assembly increased its budget from KRW 20.5 billion to 33 billion, enabling large-scale procurement of training drones and the expansion of drone-instructor training programs. Lawmakers also ensured that funds support certified domestic drones and include insurance coverage for training-related accidents. Key expansions include: KRW 35 billion to apply the government-wide AX-SPRINT initiative—cutting-edge civilian AI—to the defense sector KRW 19.5 billion to establish military–industry–academic AI cooperation centers.
  
  

  ROK MND: Budget Will Directly Strengthen Autonomous Defense Capability

  The Ministry stated that it will “ensure the efficient execution of the 2026 defense budget so that every won directly contributes to building a robust and autonomous national defense.”
  
  K-DEFENSE NEWS | Strategic Analysis Desk