Defense Ministry Announces ‘09 Budget at $29 Billion

The Defense Ministry yesterday submitted its 2009 budget proposal at 29 trillion won (approximately 29 billion dollars).

The proposed budget is up 8.8 percent or 2.3 trillion won from this year’s, and is expected to account for 15.5 percent of the national budget.

The ministry said 8.8 trillion won will go to improve defensive capabilities, up 15 percent from last year, and 20.2 trillion won will go to operational costs, up 6.3 percent.

Forty-two new defense projects will be launched next year. They include mass production of the XK2 Black Panther, which is considered one of the world’s best battle tanks; the development of mine sweeping helicopters; and the introduction of a 4,500-ton naval training ship.

The ministry will produce tens of Black Panthers at 8.3 billion won each over for two years. They will be deployed from 2011.

The combat abilities of the K-16 fighter will also be improved by allowing it to carry precision guided weapons, such as joint direct attack munitions.

Another 2.9 billion won will beef up efforts to excavate and identify soldiers killed during the Korean War, including the launch of an inter-Korean excavation project and the procurement of DNA testing equipment.

“As the inter-Korean excavation project was agreed on at the second inter-Korean talks of defense ministers last year, it can be launched any time if the North is willing to participate,” a ministry official said.

Some 728 billion won will be used to build or improve residential facilities at bases for up to three years ahead of schedule. Another 542.5 billion won will go to increase the monthly wage of a corporal from 88,000 won to 94,000 won next year, up 6.8 percent.

According to the Defense Reform 2020 project announced in 2005, the defense budget must increase 9.6-9.9 percent a year between 2006 and 2010 to reinforce defense capabilities and the military structure. Defense spending, however, increased only 7.6 percent in 2006 and 8.8 percent last year.

Korea faces an economic crisis due to spiraling oil prices, so next year’s military expenditures are expected to see deeper cuts in further derailing the Defense Reform 2020 project.

“As the government’s budget will be reduced, the defense budget will see lower growth,” a ministry official said. “We have postponed certain new projects that would cost some 150 billion won.”

ysh1005@donga.com