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Next year will see a 9.8 percent increase in defense spending with a US$22 billion military budget proposal, in excess of $2 billion more than this year. Of this, a little less than $8 billion is earmarked for improvement of the forces¡¯ fighting capability, a 12.8 percentage increase over the amount allotted in this year's budget. Of the overall defense budget, 34.8 percent will go towards these improvements.
Based on the government¡¯s policy of cooperative independent defense, it has in the last three years drawn up budgets that increased defense spending by an average of 9.27 percent per annum -- a significant increase compared to the budgets put forth during the last three years of the previous administration, which saw only a 6.53 percent average increase.
The increase in the nation's defense budget will come in around 3.3 percentage points greater than the growth in the overall budget, which is projected at 6.5 percent. That may be a reflection of plans for long-term military reform over the next 15 years.
According to defense department insiders, the National Defense Reform Bill calls for an 11 percent average yearly increase in military spending through 2015. If national finances are managed flexibly, they say, it looks as though the budget shortfall can be overcome.
But the requisite flexibility could mean finding creative ways to finance defense projects, like seeking outside capital through BTL (build-transfer-lease) projects to fund the proposed barracks remodeling projects, instead of just relying on the national coffers.
What has caught the public eye in the budget plan are the new projects. The Air Force decided to launch a next-generation guided missile project, the SAM-X (W1.1 trillion) to replace the old Nike surface-to-air missile system at the end of next year. It seeks to raise W25.8 billion initially. Discussion over introducing 48 German-style patriot missiles PAC-2 (GEM) is also underway.
Other new projects include the FFX-1, the third-generation Korean Assault Amphibious Vehicle (KAAV) project, and the new and improved GOP border guard unit. For the FFX-1 project, a basic outlay of W2 billion is earmarked for next year, with around W900 billion to be spent through 2015.
The program also includes funds for the purchase of high-altitude unmanned aerial vehicles and the replacement of dated equipment.
The monthly pay of troops will also go up. Thus a corporal's pay will go from the current W46,600 (about US$47) to W65,000.
(englishnews@chosun.com )
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