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The South Korean Defense Ministry is facing a significant budget shortfall and delays in its relocation. The ministry's budget for 2026 was finalized at 65.86 trillion won, down from the proposed 66.29 trillion won, with an actual increase of only 7.5%.

A funding crisis led to 500.2 billion won remaining unpaid by year-end 2025. About 15,000 soldiers did not receive matching funds for savings programs, and payments for defense projects were frozen. DAPA reported an 803.6 billion won shortfall.

A proposal to upgrade DAPA to a ministry-level agency has raised concerns about the military's priorities. The Finance Ministry is reviewing the budget shortfall, and the National Assembly is expected to investigate the causes.