South Korea's Defense Ministry Faces Budget Shortfall and Relocation Delays
South Korea's Defense Ministry is grappling with a budget shortfall, finalizing its 2026 budget at 65.86 trillion won, down from the proposed 66.29 trillion won, and leaving 500.2 billion won unpaid by the end of 2025. The shortfall has resulted in unpaid savings program funds for about 15,000 soldiers and frozen payments for defense projects, prompting the Finance Ministry to review the situation and the National Assembly to investigate further. Concerns have also arisen regarding a proposal to elevate the Defense Acquisition Program Administration to a ministry-level agency amidst these financial challenges.
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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.
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