It was reported on the 20th that the Ministry of National Defense stated it is currently bearing a high level of defense expenditure compared to gross domestic product (GDP) in response to the U.S. presenting the standard that Asian allies should spend 5% of their GDP on defense. This suggests that increasing to 5% of GDP is realistically difficult.
The Ministry of National Defense stated on the same day, "Korea is one of the countries with a very high ratio of defense expenditure to GDP among major allies of the United States," adding, "Considering the serious security situation such as North Korea's nuclear and missile threats, we have been continuously increasing defense expenditures." It further stated, "Korea will continue to make efforts to acquire the capabilities and posture needed for the defense of the Korean Peninsula and regional peace and stability."
Previously, the U.S. Department of Defense proposed a new standard for Asian allies, including Korea, to spend around 5% of their gross domestic product (GDP) on defense. U.S. Department of Defense spokesperson Sean Parnell stated on the 19th (local time), "We are setting a global standard for Asian allies, which is to spend 5% of GDP on defense."
Currently, the United States is newly requiring NATO member countries to spend around 5% of their GDP on defense expenditure. It has expressed its intention to make similar demands to countries like Korea and Japan. According to the Ministry of National Defense, Korea's defense budget for this year is 61.2469 trillion won, with a GDP share of 2.32%. To increase defense expenditure to 5% of GDP, the defense budget must be raised to about 132 trillion won, more than double the current amount.
NATO member countries are also announcing plans to expand defense expenditure in response to U.S. pressure for increases, but no country has yet announced a plan to increase spending to 5% of GDP. Recently, the United Kingdom announced that it will raise the ratio of defense expenditure to GDP to 2.5% by 2027 and to 3% in the next parliamentary term starting in 2029. The Dutch government plans to increase its defense expenditure, which is about 2% of GDP as of last year, to 3.5%, and to add 1.5% for related infrastructure to support readiness.