Starting next year, the nuclear-powered submarine program will move into full swing, and large-scale funding will be injected into mass production of the Korea Fighter (KF-21). To prepare for changing warfare, manned-unmanned teaming that uses artificial intelligence (AI), robots, and drones will be expanded significantly. To respond to the decline in available troops, the government will improve compensation for junior officers and strengthen reserve forces.
At a Cabinet meeting on the 1st, the government finalized the 2027 budget bill that includes these measures. The budget for introducing core forces for independent defense will rise from 18.6 trillion won this year to 21.3 trillion won next year. The budget for building manned-unmanned teaming systems will also expand from 800 billion won to 1.2 trillion won.
◇ 100 billion won for nuclear-powered submarines… KF-21 mass production 1.4 trillion→3.3 trillion won
The government will expand the budget to secure core forces for independent defense, including nuclear-powered submarines, from 1.4 trillion won this year to 3.4 trillion won next year. It will allocate 100 billion won to a new nuclear-powered submarine program next year and push forward with the goal of launching in the mid-2030s. The budget for mass production of the Korea Fighter (KF-21) will more than double from 1.4 trillion won this year to 3.3 trillion won next year.
Investment will also increase to secure equipment and weapons systems necessary for the wartime operational control transfer. The budget to secure the essential quantity of 230 mm unguided rockets for the Chunmoo multiple rocket launcher will expand from 180.3 billion won to 550.4 billion won. The budget to procure 24 types of items needed for the Special Warfare Command's high-altitude and underwater infiltration will also rise from 9.8 billion won to more than 10 times that amount at 134.8 billion won.
◇ Budget for 300-million-won counter-drone operations support up 130-fold
The budget to build manned-unmanned teaming systems using AI, robots, and drones will increase 50% from 800 billion won to 1.2 trillion won. In particular, the budget for counter-drone training and operations support will jump more than 130-fold from 300 million won to 39.3 billion won. The budget for detecting drones will expand from 50.3 billion won to 75.6 billion won, and the budget for jamming and intercepting will rise from 43 billion won to 91.6 billion won.
The budget to upgrade the GOP scientific surveillance system will also rise about tenfold from 5.1 billion won to 50 billion won. The budget for explosive ordnance disposal robots will increase from 113.2 billion won to 169.9 billion won, and the autonomous mine countermeasure project will expand from 100 million won to 7.8 billion won. The government will invest 43 billion won to demonstrate physical AI in transportation, garrisons, and security, and allocate 7 billion won to advance AI systems for the Army, Navy, and Air Force.
◇ About 3 million won a month for junior officers… standing reservists 3,700→7,000
To respond to the decline in available troops, the government will improve compensation for junior officers. It will raise the compensation improvement rate by 5.9% to lift the first-step staff sergeant's annual salary to 36 million won, or about 3 million won per month.
The incentive for newly commissioned short-term noncommissioned officers will go up from 10 million won to 12 million won, and the related budget will expand from 53.2 billion won to 115.2 billion won. The number of standing reservists will increase from 3,700 to 7,000, and training compensation will also rise from 68.8 billion won to 90.3 billion won.
◇ Veterans' honor allowance 490,000→540,000 won… veterans medical costs up 25.7%
The veterans affairs budget will rise from 6.7 trillion won this year to 7.2 trillion won next year. Veterans compensation benefits will increase 5%, and allowances such as the veterans' honor allowance will go up 50,000 won per month. The veterans' honor allowance will rise from 490,000 won to 540,000 won per month, and the military merit honor allowance will increase from 550,000–570,000 won to 600,000–620,000 won. The budget for treatment at veterans and commissioned hospitals will grow 25.7% from 720 billion won to 904.8 billion won. New quasi-veterans hospitals will open in Gangwon and Jeju.