Ministry of National Defense Republic of Korea

National defense expenditures exceed 40 trillion won for the first time

Total budget of 400.7 trillion won set

Expanded core investment to counter North Korean threats

Substantially increased budget for KAMD·KF-X, etc.

Soldier salaries increased by 9.6%

Monthly wage for corporals increased to 195,000 won

Professional counselors to be expanded

Next year’s construction project costs for Korea's Air and Missile Defense (KAMD) will increase by 40% compared to this year. The budget for the development of the Korean Fighter eXperimental (KF-X) will also increase by 4.5 times from this year’s 67 billion won.

During the cabinet meeting held on August 30, the government set the 2017 budget to 400.7 trillion won and will submit this budget to the National Assembly on coming September 2. The size of the budget has increased by 3.7% compared to the original budget for this year (386.4 trillion won).

The government also made an appropriation of 40.3337 trillion won for the defense budget. If they are confirmed as through the budget review by the national assembly, defense expenditures will exceed 40 trillion won for the first time. This is greater than the total budget increase rate (3.7%), which can be interpreted as the government's firm resolution to prepare for increased North Korean threats.

A budget increase of 2.6 times for the introduction of counterterrorism equipment

Among the defense expenditures, the budget for the KAMD construction project, which defends against North Korea’s nuclear and missile threats, has been a top priority for this appropriation. This is to responsive action toward North Korea's increased nuclear and missile threats, as they held their 4th nuclear experiment this year, as well as various ballistic missile test firings. Next year’s defense budget will include 533.1 billion won for the KAMD construction project, an increase of 40.5% compared to this year's budget of 379.5 billion won. The KAMD is a system that is currently intercepting North Korean ballistic missiles in their terminal stage, and its core weapons system consists of medium- and long-range surface-to-air missiles (M-SAM, L-SAM), Patriot missiles, and an early warning radar. The military plans to complete the KAMD construction project by the mid-2020s.

The government also included a budget of 303 billion won for the KF-X development project, which is planned to be completed in the mid-2020s. This suggests that it will speed up the project's development in earnest. With the possibility of terror toward the Republic of Korea a newly emerging threat, the budget to enhance counterterrorism forces has substantially increased. Counterterrorism equipment, including body armor and explosives disposal equipment, has increased by 25.6 billion won, which is 2.6 times the budget allocated for this year (9.8 billion won). Security facilities for the frontline troops were bolstered by a budget of 83.3 billion won a 42.2% increase when compared to this year's budget (58.6 billion won), and logistics support, including KF-16 fighter maintenance, was supported by a budget of 265.1 billion won a 23.1% increase when compared to this year's budget (215.3 billion won). The budget for a project aimed at fortifying the area around the northwest islands, which will be completed next year, has been set to 30.3 billion won.

Expanded welfare for soldiers, including the additional provision of combat uniforms

The budget to manage forces, including soldiers' welfare, was also greatly increased, to 17.1464 trillion won, a 4.5% increase when compared to this year's funding (16.4067 trillion won). The budget for soldiers' monthly wages increased by 9.6% to 1,047.2 billion won. As a result, the monthly wage for corporals will be 195,000 won, which is twice as much as the set amount in 2012 (98,000 won).

Also, 30,709 air conditioners will be introduced; their electric charges (5 billion won) have been included in the budget proposal so that soldiers can fully use these air conditioners. This amount was set so that all air conditioners can be operated 6 hours each day for 3 months in the summer season, from the middle of June to September. Furthermore, the budget for forces management also includes expenses for additional summer combat uniforms and daily supplies, including a bag for outings. Expenses associated with expanding the deployment of professional counselors to support army life, ranging from the brigade level to regimental levels, as well as participation in ‘Camp-type Personality Program’ conducted by a private specialized organization, have been included in the budget proposal as well.

By Yeong-Sun, Lee <ys119@dema.mil.kr >

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