South Korea proposes 4.5% increase in 2022 defence budget

South Korea's Ministry of National Defense (MND) has proposed a defence budget of KRW55.23 trillion (USD47.6 billion) for 2022.

The MND said on 31 August that the new expenditure, which will be submitted to the National Assembly for approval, is a year-on-year increase of 4.5%.

South Korea is one of the fastest growing large defence markets in the world, according to Janes Defence Budgets. (Janes Defence Budgets)

This proposed increase reflects concerns in Seoul about North Korean military modernisation. Pyongyang announced plans earlier in 2021 to accelerate the development of capabilities including tactical nuclear weapons, nuclear-powered submarines, and hypersonic missiles.

The MND said in a press release that its proposed budget for 2022 comprises KRW17.34 trillion for force modernisation and KRW37.89 trillion for military operations, increases of 5.7% and 2% respectively.

The force modernisation expenditure includes about KRW12.46 trillion for military procurement and KRW4.88 trillion for research and development (R&D). The MND said it is aiming to spend 87% of these expenditures on local products and technologies. R&D funding in 2022 will increase by nearly 13%, it said.

In terms of major programmes, the MND said the proposed 2022 allocation includes funding for the procurement of military surveillance satellites, air defence systems, tactical communications capability, Hyundai Rotem K-2 main battle tanks, Lockheed Martin F-35 fighters, and FFX III guided-missile frigates.

Major R&D projects funded through the budget include the KF-21 fighter, which received KRW454 billion, next-generation submarines (KRW421 billion), small satellites (KRW11.2 billion), and a long-range artillery interceptor system (KRW18.9 billion).

The proposed funding also comprises increases for defence-industrial support measures including innovation in 4th Industrial Revolution technologies. Other MND priorities in the proposed budget include funding for military personnel welfare, training facilities and infrastructure, and logistics and sustainment.