Defense ministry seeks 8.2 pct budget increase for 2027 amid OPCON transition, forces reform push

Seoul, on September 1, received word from the defense ministry regarding a proposed 8.2 percent rise in the 2027 budget. This increase totals 73.27 trillion won, a 5.57 trillion won hike from the 67.7 trillion won budget of 2026. The primary focus of this proposal is to bolster the military's self-reliant defense capabilities and transition from a labor-intensive model to a technology-driven one. This shift is driven by a challenging security landscape and a dwindling supply of conscripts.

The proposed budget is specifically aimed at facilitating the transfer of wartime operational control (OPCON) from the United States, a key objective of the Lee Jae Myung administration. This transition is set to occur before the administration's five-year term concludes in 2030 or earlier.

The budget also supports the development of nuclear-powered attack submarines, part of the Jang Bogo N project, as discussions with Washington are underway to construct these crucial warships under a bilateral trade and security agreement. Additionally, funds will be allocated to enhance the KF-21 fighter jets, a cornerstone of South Korea's air defense system, which has garnered international interest.

In response to the declining number of conscripts, the budget is directed towards transitioning forces into an AI and unmanned system-driven structure, with a particular emphasis on upgrading drone and anti-drone capabilities. The forces operations sector is allocated 50 trillion won, a 5.9 percent increase from the current year, while defense capability enhancement receives 22.7 trillion won, marking a 13.8 percent increase from 2026.

The military manpower administration sector's budget stands at 524.9 billion won, a 1.4 percent rise from 2026.