(MENAFN) South Korean President Lee Jae Myung introduced his administration’s inaugural budget on Tuesday, proposing a 728 trillion won ($505 billion) expenditure plan for 2026. This marks an 8.1% rise compared to the current year.

In terms of defense, the government has earmarked 66.3 trillion won ($46 billion), reflecting an 8.2% increase from this year.

The funds are intended to modernize conventional weaponry with state-of-the-art capabilities and accelerate the establishment of a “self-reliant defense,” according to a news agency.

“Relying on external forces for our defense is a matter that hurts national pride,” President Lee stated, promising to regain wartime operational control from the United States before his term concludes in 2030.

Additionally, the administration plans to allocate 10.1 trillion won ($7 billion) to expedite the country’s artificial intelligence (AI) transformation, with the goal of positioning South Korea among the top three AI powers worldwide.

During his budget address to parliament, Lee emphasized strengthening efforts to build an independent military while maintaining diplomatic initiatives to resume dialogue with North Korea.

He highlighted the ambition to transform South Korea’s defense forces into a “smart and strong” military by leveraging AI technologies.

“We will significantly strengthen our national defense capabilities and make sure to realize our hope for self-reliant defense,” Lee remarked, adding that “our people's pride will be undermined if South Korea continues to rely on foreign nations for its defense.”

He also mentioned progress in discussions with the United States, stating: “Progress in consultations on the supply of nuclear fuel for nuclear-powered submarines has strengthened the foundation for self-reliant defense.”

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