The rise represents the largest increase in South Korea’s defence budget for over 15 years. 

South Korea’s President, Lee Jae-Myung, outlined plans to increase the country’s defence budget by 8.2% in 2026, as the world enters what he called “an era of increased conflict”. 

Speaking during the country’s Armed Forces Day on 1 October, Jae-Myung said that the budget will reach KRW66.3 trillion (USD47.1 billion). 

Budget priorities include strengthening South Korea’s “core response capabilities, such as the Korean Three-Axis System” and accelerating the acquisition of AI-powered crewed and uncrewed systems.   

The Three-Axis System, designed after North Korea's fifth nuclear test in 2016, is South Korea's military strategy to counter the country’s growing nuclear and missile capabilities.  

This budget announcement comes after requests from the US for its allies in Asia to follow NATO in committing to spend 5% of GDP on defence within the next decade. Currently, South Korea spends approximately 2.3% of its GDP on defence.  

Notably, South Korea’s defence spending was almost one and a half times larger than the entirety of North Korea's GDP in 2025; however, wider regional threats require it to bolster its preparedness. 

Jae-Myung spoke to a global increase in threat, warning that “the momentum for cooperation and shared prosperity is weakening across the world, and we are entering an era of increased conflict, where it’s every man for himself.” 

Potentially referring to South Korea’s historic reliance on the US – which still has around 28,000 troops stationed in the country – he said that “to ensure peace and prosperity for the Republic of Korea, we must not depend on anyone else but strengthen our own power.”  

Despite this depiction of a world where states are alone in defending their respective interests, South Korea is making concerted efforts to bolster its regional and international ties. 

Just last week, Japanese Prime Minister Ishiba Shigeru visited Busan, South Korea, for a summit to discuss strengthened geopolitical cooperation, with specific reference to technology cooperation and ongoing defence bilateral meetings among other topics. 

Meanwhile, South Korea and Poland are continuing to develop a thriving defence export relationship, with Poland having agreed to acquire up to 1,000 K2 Black Panther main battle tanks.  

Besides these examples, the country also has an ongoing Security and Defence Partnership with the EU and works closely with NATO in several areas of mutual interest.