South Korea Details Defense Budget

□ The government prepares the defense budget for 2022 at KRW 55,227.7 billion, a 4.5% increase from the main budget in 2021, and submits it to the National Assembly on September 3rd. If it is finally reflected as the government’s proposal, the increase rate of the current government’s defense budget will be an average of 6.5%.

* (’18) 7.0% (’19) 8.2% (’20) 7.4% (’21) 5.4% (’22 plan) 4.5%

ㅇ The cost of improving defense capabilities for military construction increased by 2.0% to KRW 17,336.5 billion, and the cost of operating power for operating the military increased by 5.7% to KRW 37,891.2 billion.

□ This defense budget has prioritized the requirements for power reinforcement such as building a nuclear and WMD response system and essential requirements for operating military forces such as logistics, facilities, and education and training in preparation for all-round security threats.

□ We focused on the defense R&D budget needed to improve the food service and improve the welfare of soldiers, which has recently become an issue, and to strengthen the global competitiveness of the domestic defense industry.

□ The main contents of the 2022 defense budget are as follows.

① The budget was prioritized to secure advanced weapon systems in a timely manner to establish a strong defense posture in preparation for all-round security threats.

– Military reconnaissance satellites, ballistic missile warning radar-II, nuclear and WMD threat response capabilities such as the 2nd Patriot performance improvement (4.665 trillion won), tactical information and communication system (TICN), K-2 tanks, Ulsan-class Batch-III, etc. 13 as a budget for acquiring weapons systems to build a comprehensive response capability against supranational and non-military threats such as reinforcement of restructuring-related power (KRW 5,724.7 billion), explosives detection and removal robots (R&D), and submarine rescue ship-II (KRW 261 billion). KRW 698.5 trillion was organized.

– Based on the mature new technology of the private sector, the budget related to rapid acquisition to be applied to weapons systems in a short period of time to be applied to power (303 → 145.5 billion won), Boramae (454.1 billion won), next-generation submarines (421 billion won), and ultra-small satellites (11.2 billion won) ) and long-range artillery interception system (KRW 18.9 billion), we will continue to develop and secure domestic high-tech weapons systems without any setbacks to strengthen our self-reliant defense capabilities.

② To secure domestic development capabilities for advanced weapon systems and to strengthen defense R&D technology competitiveness, the defense R&D budget was increased to KRW 4.884 trillion, up by 12.8%, or 552.7 billion KRW from 2021.

– After securing the core components and technologies necessary for the future advanced weapon system in advance, we have prepared the conditions for system development and increased the budget for challenging and innovative technology development by 66% in order to lead the world in the development of future new concept weapon systems.

* Core technology/future challenge defense technology development: (’21) 6,318 → (’22) KRW 1.51 trillion (+4,194, +66.4%)

– This increase in technology development budget, such as core technology development, enables the development of parts and related technologies prior to the development of the weapon system, thereby reducing the payment of parts and technology fees, preventing foreign currency outflow, and enabling the smooth supply of parts necessary for future operation and maintenance. This is expected to reduce total life cycle costs.

③ In order to secure competitiveness in the global defense market and expand overseas exports, and at the same time to build an ecosystem where the domestic defense industry can continue to develop, expand related budgets such as nurturing defense venture companies and supporting global small and medium-sized defense enterprises, and overall defense capability improvement budget By significantly increasing the proportion of domestic investment in China compared to 2021, we will support the development of the domestic defense industry.

* Defense venture business development: (’21) 197 → (’22) KRW 25 billion (+53, +26.9%)

* Defense industry export support: (’21) 519 → (’22) 63.8 billion won (+119, +22.9%)

* Proportion of domestic investment in defense capability improvement budget: (’21) 79% → (’22) 87% (+8%p)

④ Continue to invest in dramatically improving the quality of military meals and creating a more productive and healthy barracks life.

– In order to provide sufficient and balanced nutrition, such as adding meat, etc. to the soldiers’ preferred menu, and expanding the amount of vegetables and fruits, the basic meal cost per soldier has been greatly increased (8,790 → 11,000 won per day, +25.1%), and meals mainly for cooks To improve the manpower structure, we will increase the number of private cooks by 910 (2,278 → 3,188).

– In particular, modernized and state-of-the-art cooking utensils such as ovens (1,248 units) and conveyor-type toasters (4,077 units) have been expanded (8 types, KRW 33.5 billion) in order to reduce the workload of the overburdened cooks and ensure rest time. The budget was reflected so that duct cleaning was performed by private services. (2,717 places, KRW 4.4 billion)

– Increase the cost of self-development for the sick, which is supported for purchase of books, acquisition of qualifications, and physical training, so that they can overcome academic and career interruptions due to military service (70→100% of military capacity, 10→120,000 won, 38.7 billion won), and remote university Course tuition is also increased. (6.25 → 100,000 won, 2.4 billion won for 3 credits per semester) We provide 80,000 won per month for self-development expenses to officers and non-commissioned officers so that they can develop their competencies as candidates for college life. (4.8 billion won)

– To ensure sufficient conditions for physical training and education regardless of weather conditions, a pilot project of 10 indoor gymnasiums in the form of a ‘dome’ that can be built with a small budget in a short period of time is promoted (KRW 17.9 billion); We also reflected the insufficient securing of housing facilities for executives (308 households in office / 5934 rooms for executive residence, KRW 461.5 billion) and the need to improve the narrow prefabricated and trainee dormitory (41 buildings, KRW 69.1 billion).

⑤ In order to lead the future battlefield, we are actively promoting the Korean version of the New Deal and smart defense innovation, such as strengthening the capabilities of the 4th industrial revolution technology such as AI and big data, and securing advanced equipment.

– Invest 22.1 billion won to build AR?VR equipment, such as special forces descent training VR equipment, VR education and training center, and reserve force VR simulation shooting equipment, and 4 practical scientific training centers (13.3 billion won) and smart Establishment of a reserve army and trainee management system (KRW 7.5 billion).

– Through collaboration with the Ministry of Science and Technology (Institute for Information and Communication Planning and Evaluation), we invest KRW 5.5 billion in the budget for nurturing talents in the 4th industrial revolution technology in the military (the Ministry of Science and Technology also invests KRW 4 billion). Through this, military specialized AI training, AI?SW training pilot unit operation, infrastructure construction, etc. will be promoted.

– Purchase 742 sets of commercial drones to contribute to the creation of civilians and to activate education and training and combat experiments using drones (37.5 billion won) We also reflected KRW 29.8 billion required to strengthen the national cyber security response capabilities, such as cyber control, surveillance and reconnaissance, defense, prevention, and training.

⑥ In order to inspire military service motivation, we will definitely support those who fulfill their military service obligations, and we will also implement the elite defense manpower structure as planned to strengthen combat capabilities.

– The government task goal is to raise the sick pay to the level of 50% of the 2017 minimum wage (based on military personnel, 608,500 → 676,100 won per month), and the state will pay an additional interest rate of 1% to the reserve deposit for sickness, which has a basic interest rate of 5%. Additional support (KRW 2.6 billion), and additional support for tomorrow’s preparation for sick days when discharged, the state additionally supports one-third of the amount including payments and interest (KRW 216.5 billion). (Total 2,191 billion won)

* If you pay 400,000 won per month for 18 months of service, you can prepare a small amount of about 10 million won by receiving your own payment of 7.54 million won (including interest) + 251 million won from the state support (applied from the amount paid on January 22, 22nd)

– In addition, although it is a legal obligation, the compensation paid to reservists who participate in mobilization training will be increased to 62,000 won, putting aside livelihood and daily life. (25.4 billion won, 47,000 → 62,000 won, +31.9%)

– In preparation for a decrease in military service resources, the number of standing troops will be reduced to 500,000 by 2022, while 937 non-commissioned officers and 4,566 military personnel will be increased to strengthen combat power. Reinforced noncombatants are skilled combat personnel who will smoothly operate the newly introduced advanced equipment, and military personnel will be continuously reinforced in non-combat fields such as maintenance, supply, administration, etc.

⑦ We will invest in all logistics requirements for the operation of existing forces and strengthen our ability to respond to non-traditional threats such as infectious diseases and counter-terrorism.

– To facilitate the procurement of discontinued parts and maintain an appropriate level of equipment utilization, the performance-based logistics support (PBL) such as CH-47 and K21 armored vehicles will be expanded and organized (12→17 types, 688.2 billion won).

* PBL: A system in which a contract is made with a company based on the scope of logistics support and performance goals, and the company provides logistics support, evaluates the results, and pays the price according to the performance

– New PCR test cost (21.4 billion won) to strengthen infectious disease response capabilities, supply of health masks (3 sheets a week → 5 sheets a week, 53.6 billion won), control service for the entire army (5 times a year), negative pressure type patient accommodation equipment 2 KRW 135.3 billion was reflected in the budget for reinforcing medical equipment, materials, and facilities, such as a large and one negative pressure ambulance.

– In order to reinforce the counter-terrorism capabilities of nationally designated special missions (11 → 35) additionally designated according to the revision of the ?Terrorism Prevention Act? revision in December ’20, anti-terrorism and live broadcast equipment and materials will be expanded. (Operation command vehicle, EOD suit) , operational carrier, mobile command communication system, etc. 56.2 billion won)

□ The Ministry of National Defense will closely consult with the National Assembly and other relevant organizations so that the 2022 defense budget can be prepared without any setbacks and become the basis for ‘building a strong military that supports peace on the Korean Peninsula and creating a military culture that is trusted by the people’. .

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