Page 161 - 2018 Defense White Paper

A level of defense capabilities that corresponds to the size of the ROK economy needs to

be maintained for the people to have a peaceful and comfortable life amid various security
variables. This can be achieved only when supported by an adequate defense budget.

3. Defense Budget and the Mid-Term Defense Plan

| 2019 Defense Budget | To ensure the right conditions for the implementation of “Defense
Reform 2.0,” which aims to build a strong defense capacity, the 2019 defense budget was set at
KRW 46.7 trillion, representing an 8.2% increase from the previous year. The force enhancement

budget for the acquisition and development of weapons systems is KRW 15.4 trillion, accounting
for 32.9% of the defense budget. The force operating costs required to operate and maintain
troops and existing forces totalled KRW 31.3 trillion, representing 67.1% of the defense budget.
The size and allocation of the 2019 defense budget based on general accounting are shown in Chapter 4

[Chart 4-16].

[ Chart 4-16 ] 2019 Defense Budget (General Account)
(Unit: KRW billion, %)

Category 2018 Budget (A) 2018 Budget (B) Changes (B-A) Increase
Rate (%)
Total Defense Budget 43,158.1 46,697.1 3,539.0 8.2
Subtotal 29,637.8 31,323.8 1,686.0 5.7

Troops
Operating 18,400.9 18,775.9 375.0 2.0
Force
Costs
Operating
Costs Operations
and
11,236.9 12,547.9 1,311.0 11.7
Maintenance
Costs
Force Enhancement Budget 13,520.3 15,373.3 1,853.0 13.7

Force operating costs increased by 5.7% from 2018 to KRW 31.3 trillion. About KRW 3.2

trillion has been allocated for the implementation of seven major government projects in the
defense field including the enhancement of the quality of military meals. A budget of around
KRW 2.6 trillion has been allocated to implement 13 projects from the defense management and

Section 6 Securing an Adequate Defense Budget and Enhancing the Efficiency of Defense Budget Management 159