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Undisbursed Defense Budget for 2025 to Be Executed This Week: Ministry

Seoul: The Ministry of Economy and Finance announced on Tuesday that portions of last year's defense budget, which were not disbursed by the end of 2025, will be executed as swiftly as possible. This decision comes amid controversy surrounding the failure to pay approximately 1.3 trillion won (US$899 million) in defense-related expenditures to military units and defense contractors by the end of last year.

According to Yonhap News Agency, the ministry stated in a press release that any unexecuted spending from the 2025 expenditure budget will be carried out within this week. The ministry is actively consulting with the defense ministry and other relevant bodies to facilitate this process, leveraging what is known as "January revenue."

"January revenue" pertains to tax and other revenue for the 2025 fiscal year, which is legally required to be deposited into the state treasury by the second business day of 2026, a deadline that was met on Monday. The ministry's prompt action aims to resolve financial discrepancies and ensure that all defense obligations are met without further delay.

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