South Korea has earmarked a budget of $222bn for the five-year period spanning 2021 to 2025 to strengthen its defence posture, according to a report by prominent data and analytics firm GlobalData.
In response to escalating regional tensions involving North Korea and a more assertive China, South Korea is focused on procuring sophisticated weaponry, enhancing military readiness, and reinforcing its cybersecurity defences.
GlobalData's report, titled South Korea Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025–30, outlines the country's ongoing modernisation efforts.
Among the major procurements are the K239 Chunmoo multiple rocket launch system, the KF-21 Boramae multirole aircraft, and the K9 self-propelled artillery systems.
All these systems have been developed domestically.
GlobalData Aerospace & Defense analyst Akash Pratim Debbarma said: “Over the years, South Korea has successfully diminished its reliance on imports and enhanced the capabilities of its armed forces through the indigenous development of several advanced military systems.
“The country’s allocation of funds toward acquisition and research, development, testing, and evaluation (RDT&E) underscores its commitment to addressing the evolving security challenges within the region.”
South Korea’s increasing defence posture is seen as a direct response to the stalled peace process with North Korea. The country’s defence budget was recorded at $46.2bn in 2021 but saw a decline to $42.3bn in 2022.
It later rose to $45.6bn by 2025, although this represented a negative compound annual growth rate (CAGR) of 0.3%.
Looking ahead, South Korean defence spending is projected to grow at a CAGR of 2% between 2026 and 2030, reaching $50.1bn by the end of the decade.
The acquisition budget is also expected to rise from $11.7bn in 2026 to $11.9bn in 2030.
Debbarma added: “As North Korea continues its nuclear-capable missile tests, South Korea remains steadfast in enhancing its deterrence strategies, bolstering its air, naval, and missile defence capabilities. However, South Korea is still mainly dependent on the 28,500 US troops to maintain a credible deterrence against potential hostilities from North Korea.
“With looming uncertainties about the continuance of its reliance on US support following Trump’s return to office, South Korea will likely redirect most of its defence budgets into indigenization efforts. While supporting its armed forces, South Korea will also try to achieve economy of scale to keep the cost down for its domestic defence systems by exporting them to its allies worldwide.”
