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Seoul aims to bolster three-axis deterrence system with defense budget hike

Published: 03 Sep. 2025, 13:31

The homegrown KF-21 fighter prototype No. 4 completes its 1,000th sortie in this file photo from Nov. 28, 2024. [DEFENSE ACQUISITION PROGRAM ADMINISTRATION]

South Korea aims to strengthen its three-axis deterrence system against North Korean threats and build a cutting-edge combat system with a proposed 8.2 percent hike in the defense budget for next year, the Ministry of National Defense said Wednesday.

Under the proposal submitted to the National Assembly the previous day, the ministry is seeking a budget of 66.3 trillion won ($47.6 billion) for next year, the biggest on-year expansion in six years since an 8.2 percent increase in 2019.

The increased budget will be allocated with a focus on building "overwhelming" response capabilities as South Korea eyes the transition of wartime operational command (Opcon) to Seoul from Washington, the ministry said.

It plans to spend 8.9 trillion won, up 22.3 percent from this year, on strengthening the three-axis structure comprising the Korea Air and Missile Defense multilayered missile shield system, the Kill Chain pre-emptive strike platform and the Korea Massive Punishment and Retaliation system.

The ministry also aims to nearly double the budget for investments to integrate artificial intelligence-based combat systems into manned and unmanned assets to 340.2 billion won from 191.5 billion won.

Seoul aims to complete the Opcon transfer within President Lee Jae Myung's five-year term. The security policy goal had long been stalled in the face of Pyongyang's evolving nuclear and missile threats.

The current "conditions-based" Opcon transfer the allies have been working on includes South Korea's capabilities to lead combined Korea-U.S. forces, its strike and air defense capabilities and a regional security environment conducive to such a handover.

A Hyunmoo-II surface-to-surface missile, a centerpiece of the Korea Massive Punishment and Retaliation system, is launched during a live-fire drill in this file photo from Nov. 8, 2024. [JOINT CHIEFS OF STAFF]

As part of efforts to increase its modern warfare capabilities, the ministry also plans to allocate 5.9 trillion won for defense research and development, up 19.2 percent from the previous year.

Also included in the budget plan was the improvement of working and living conditions for entry-level officers as the country faces difficulties in securing military personnel and increasing investment for the homegrown KF-21 fighter jet.

Seoul is under growing pressure from Washington to boost defense spending to 5 percent of its GDP. South Korea's defense spending for 2025 accounted for 2.32 percent of GDP.

During his visit to Washington last month, Lee vowed to increase defense spending in a bid to bolster the country's security posture.

On Tuesday, the presidential office said negotiations are "still underway" for an increase in annual defense spending, adding that it is expected to be discussed as part of a broader "package deal" covering trade, economic and security issues.

Yonhap