The South Korean government has proposed a 73.28 trillion won ($52.7 billion) defense budget for next year, up 8.2% from this year, and plans to raise entry-level staff sergeant pay to about 3 million won ($2,160) a month while expanding its standing reserve force to 7,000 troops in response to a shrinking pool of conscripts.
The Ministry of National Defense said on the 1st that it had submitted the 2027 defense budget proposal of 73.2777 trillion won to the National Assembly. The figure is 5.5737 trillion won higher than this year's budget of 67.704 trillion won.
By category, force operation costs rose 5.9% to 50.0416 trillion won and defense capability improvement spending rose 13.8% to 22.7112 trillion won. The military manpower administration budget increased 1.4% to 524.9 billion won. The sharply faster growth in capability improvement spending reflects expanded investment in advanced weapons systems.
Within capability improvement spending, the weapons systems budget will rise 15.2% to 17.7987 trillion won. Aircraft programs account for the largest share at 6.5662 trillion won, up 36.9%, while command and reconnaissance programs will jump 28.9% to 2.4393 trillion won.
The government aims to secure early the core capabilities needed to build a South Korean-led combined defense system after the transfer of wartime operational control. It plans to strengthen combined operations command capabilities through upgrades to air-ground communication radios and the construction of a new wartime military intelligence distribution system for the Combined Component Command.
The budget also strengthens the response to North Korea's nuclear and missile threats. The ministry plans to field the medium-altitude unmanned aerial vehicle (MUAV) and the long-range surface-to-air missile (L-SAM) ahead of schedule, expand investment in the initial production of the KF-21 fighter and pursue follow-on production. It will also launch a nuclear-powered submarine program as part of efforts to secure core self-reliant defense capabilities.
Stemming the Exodus of Junior Officers
With departures of military officers and noncommissioned officers accelerating, the ministry will also push a restructuring of the force. It plans to expand the standing reserve force from the current 3,700 troops to 7,000 and raise compensation for reserve forces training.
Pay and support measures will be strengthened to help retain junior officers and NCOs. The government will apply a 5.9% base pay improvement rate for first and second lieutenants and for staff sergeants and sergeants, raising pay for a staff sergeant at the first pay grade to about 3 million won a month. The change is expected to resolve the pay inversion between enlisted soldiers and junior leaders in an era when sergeants earn 2 million won a month, and to make pay gains more tangible for serving officers and NCOs. The incentive for short-term service NCOs will rise from 10 million won to 12 million won, and a new matching savings program for short-term service NCOs will provide up to 300,000 won a month for three years to newly commissioned NCOs.
Housing support will also be expanded. Interest subsidies for jeonse (a lump-sum deposit lease) loans for officers and NCOs will be extended to those not living in military quarters, and the benchmark support amount will be raised. The ministry will invest in improving aging service housing and quarters and in securing additional units, while raising the meal allowance for personnel living off base to 160,000 won a month.
"We will actively explain and cooperate so that the major programs in next year's defense budget proposal are reflected without disruption during the National Assembly's budget review," the ministry said.
