Overview

• Defense officials submitted a 66.3 trillion won request for 2026, an 8.2% rise and the largest year-on-year increase in seven years.
• 8.9 trillion won is earmarked to reinforce the three-axis deterrence framework covering missile defense, preemptive strike, and punitive retaliation.
• The plan budgets for SM-3 shipborne interceptors and development of long-range air-to-air missiles for the KF-21, alongside added funding to operate the fighter.
• Investment in AI-enabled manned–unmanned combat systems nearly doubles to 340.2 billion won, with defense R&D set at 5.9 trillion won, up 19.2%, plus measures to improve entry-level officer conditions.
• Vice Defense Minister Lee Doo-hee said consultations with the U.S. on raising defense outlays have not concluded, the presidential office described negotiations as part of a wider package, and reports of a 3.5% of GDP target remain unconfirmed amid broader U.S. pressure reported at up to 5%.