Defense Ministry Demand 13.4 Percent Increase in Budget

The Defense Ministry said on June 11 that it would propose 21.48 trillion won for next year’s defense spending, up 13.4 percent year-on-year.

The proposed defense budget would make up 2.9 percent of the next year’s fiscal budget. As the U.S. is seeking to reduce its military personnel in Korea, the ministry demands a 0.1 percent increase from its budget of 2.8 percent in the previous year in terms of the country’s entire national budget.

“Initially, we have drafted a proposal with long-term budgetary projects,” Maj. Gen. Won Jang-hwan, director of the acquisition policy bureau, said in a press briefing, said. “However, as the security condition is drastically changing because of the realignment of the USFK, we decided to demand the 2.9 percent after considering additional budgetary needs.” The additional budgetary needs refer to budgetary items that will be included in a ‘special budget for the relocation of USFK bases aimed at financing relocation costs for the USFK.

Item by item, the ministry demand 7.3 trillion won for investment in strategic projects, up 16 percent, and 14.2 trillion won for operations revenue, up 12.1 percent.

Next year’s new strategic projects include, 49.7 billion won for the purchase of next-generation guided weaponries, 15.3 billion won for self-propelled artilleries and ammunition armored vehicles, 1.9 billion won for satellite equipment and 4.3 billion won for biochemical analyzers.

For the budget for the projects that are currently underway, the ministry demands 2.32 trillion won for equipment maintenance, 1.6 trillion won for F-15 fighters and T-50, Aegis-ready destroyers and transport ship, 84.9 billion won for the armoring of division deployed along the frontline and 40.8 billion won for AWAC and C41 commands.

The proposal put subsidies for the USFK at 811.6 billion won, up 16.2 percent compared to 698.3 billion won this year.

Operations revenue includes 2.8 trillion won for wage increases for officers and soldiers, the provision of new bullet-proof helmets, and the improvement of officers’ housing. The average wage for soldiers will increase 55 thousand won next year from the current 35.6 thousand won. The average meal will increase 48 thousand won from 46 thousand won. The ministry demand 667 billion won for the purchase training ammunition and sites and 107.6 trillion won for environmental protection and public complaint-related payouts for training sites.

Ho-Won Choi bestiger@donga.com