Page 192 - 2020 Defence White Paper

securing an adequate level of defense budget is also required to seamlessly promote
Defense Reform 2.0, which seeks to further transform the military into an elite force
and acquire advanced weapons systems. Furthermore, in order to effectively respond
to the changing security environment where transnational and nonmilitary threats
including infectious diseases and terrorism are on the rise, it is necessary to secure
an appropriate level of budget for discretionary spending in addition to the budget for
f xed spending such as labor costs and meal expenses which account for a large part
of the defense budget.
It is important to maintain a national defense capacity that corresponds to the size
of the ROK economy in order to enable the people to live a peaceful and comfortable
life amid various security variables, and this can be achieved when supported by an
adequate defense budget.

3. Defense Budget and the Mid-Term Defense Plan

2021 Defense Budget To ensure the right conditions for the implementation
of Defense Reform 2.0 aimed at building a powerful

defense capacity, the defense budget in 2021 was set at KRW 52.8 trillion,
representing a 5.4% increase from the previous year. Costs required to operate and
maintain troops and forces (force operation costs) totals KRW 35.8 trillion,
accounting for 67.8% of the defense budget. The force enhancement budget for
acquisition and development of weapons systems is set at KRW 17 trillion or 32.2%
of the defense budget. The size and allocation of the defense budget in 2021 based on
general accounting are shown in [Chart 5-12].

[Chart 5-12] Defense Budget in 2021 (General Account)
(Unit: KRW billion, %)
Increase
Category 2020 Budget (A) 2021 Budget(B) Changes (B-A)
Rate
Total Defense Budget 50,152.7 52,840.1 2,687.4 5.4
Subtotal 33,472.3 35,843.7 2,371.4 7.1
Troops
Force Operating Costs 19,860.0 20,587.2 7,272 3.7
Operation
Costs Force
Operation and 13,612.3 15,256.4 1,644.1 12.1
Maintenance
Costs
Force Enhancement Budget 16,680.4 16,996.4 3,160 1.9

2020 Defense White Paper