Page 191 - 2020 Defence White Paper

The defense budget-to-GDP ratio of each country tends to be proportionate to the
severity of the security threats that it faces. As [Chart 5-11] shows, countries facing
a relatively low level of security threats, such as France, United Kingdom, Japan,
China, and Germany, spend about 1 to 2% of their GDP on defense spending. In
comparison, countries involved in conflicts or military confrontations, such as Israel,
Iran, Iraq, Kuwait, Saudi Arabia, and Pakistan, spend more than 3% of their GDP on
defense spending.
In 2019, the ROK̕s defense budget-to-GDP ratio came to 2.43%, which is higher
than the world average of 2.02%, but lower than those of nations involved in conflicts
or military confrontations.

[Chart 5-11] Defense Budget-to-GDP Ratios of Key Nations (as of 2019)
Germany
1.26%
United United Iraq
States Kingdom 9.12% ROK Chapter 5
3.19% 2.00% 2.43%
Israel Iran
5.82% 3.80%
1.93%
3.66% 0.94%
France
Pakistan Japan
10.06%
Saudi Arabia
1.28%
China
4.65%
Kuwait
* Source: The Military Balance 2020 (Center for Strategic and International Studies, February 2020)

2. The Importance of Securing an Adequate Defense Budget

The ROK̕s security environment is exposed to diverse threats such as North
Korea’s military threats as well as transnational and nonmilitary threats. To lay the
foundation for the complete denuclearization and a permanent peace regime on the
Korean Peninsula, superior defense capabilities must be obtained. Moreover, an
adequate level of military force is necessary for the ROK to independently lead inter-
Korean issues amid neighboring countries in Northeast Asia building their military
forces.
In order to establish a strong defense posture against various security threats, it is
essential to continuously invest in major defense requirements for force operations
such as military supplies, installations, and education and training. At the same time,

Chapter 5. Establishing a Fair, Transparent, and Efficient National Defense Operation System 189