Seoul: President Lee Jae Myung announced that South Korea is set to enhance its self-reliant military capabilities while continuing to engage in dialogue with North Korea. Lee emphasized the importance of strengthening national defense and reducing reliance on foreign nations.
According to Yonhap News Agency, President Lee outlined plans to modernize South Korea's defense force by integrating artificial intelligence technology. This initiative aims to transform the military into a "smart and strong" entity. Recent developments include approval from former U.S. President Donald Trump for South Korea to build nuclear-powered submarines in a U.S.-owned shipyard, marking progress in securing nuclear fuel for such submarines.
Lee also highlighted the economic benefits of a recent tariff deal with the U.S., which aligns South Korea's tariff levels with competing countries in key export sectors like automobiles and semiconductors. This agreement establishes a fair competitive environment for South Korean industries.
In diplomatic efforts, Lee's first summit with Chinese President Xi Jinping resulted in the restoration of bilateral relations between South Korea and China. Both nations agreed to work as "strategic cooperative partners." Additionally, the two countries signed a currency swap line worth 70 trillion won and six other agreements to combat transnational crimes and foster economic collaboration.
During the Asia-Pacific Economic Cooperation (APEC) gathering, South Korea's diplomatic efforts under challenging conditions were commended. Lee emphasized the government's commitment to pragmatic diplomacy centered on national interest.
In his administration's first annual budget speech, Lee proposed a 728 trillion-won spending plan for 2026, marking an 8.1 percent increase from this year. A significant portion of this budget is earmarked for AI industry investment, with 10.1 trillion won allocated to transform South Korea into a leading AI power. The government plans to acquire 15,000 additional graphics processing units to meet its AI development goals.
Defense spending is set to rise by 8.2 percent to 66.3 trillion won, focusing on upgrading weapon systems and achieving self-reliant defense. Lee reiterated the importance of national pride in defense matters and his goal to regain wartime operational control from the U.S. by 2030.
Lee called for bipartisan support to pass the annual budget by the December 2 deadline. However, the main opposition People Power Party boycotted Lee's speech in protest against a special counsel team's decision to seek an arrest warrant for a lawmaker involved in a former President's martial law bid.