Seoul: The defense ministry announced on Tuesday that it has proposed an 8.2 percent increase in the 2027 budget, aiming to expedite the transfer of wartime operational control (OPCON) from the United States and advance the modernization of its military forces and capabilities amidst a declining number of conscripts.
According to Yonhap News Agency, the proposal outlines a budget of 73.27 trillion won (US$53.5 billion), marking an increase of 5.57 trillion won from 67.7 trillion won in 2026. The ministry emphasized that the focus is on enhancing the military's self-reliant defense capabilities and transitioning from manpower-heavy forces to a technology-centered military, in response to the evolving security landscape and a decreasing pool of conscripts.
The proposed budget particularly aims to secure key military capabilities required for the OPCON transition from Washington, a strategic priority for the Lee Jae Myung administration, which seeks to accomplish this before the end of its term in 2030 or sooner.
In addition, the budget will support initiatives to acquire nuclear-powered attack submarines, referred to as the Jang Bogo N project. Seoul is in discussions with Washington to construct these crucial warships under a bilateral trade and security agreement.
The draft budget also allocates funds for the development of KF-21 homegrown fighter jets, a vital component of South Korea's air defense assets, amidst increasing international demand for South Korean defense products.
In response to the declining number of conscripts, the ministry plans to use the proposed budget to transition forces into an artificial intelligence (AI)- and unmanned system-driven structure, with a particular focus on enhancing drone and anti-drone capabilities.
The sectoral budget for forces operations is set at 50 trillion won, a 5.9 percent increase from this year, with 22.7 trillion won allocated for defense capability enhancement, marking a 13.8 percent year-on-year increase.
The budget for the military manpower administration sector has been set at 524.9 billion won, a 1.4 percent increase from 2026, according to the ministry.