South Korea unveils record $505b budget as lee pushes ‘self-reliant defense’ and AI ambition
South Korean President Lee Jae Myung has announced the largest budget in the country’s history, unveiling a ₩728 trillion ($505 billion) spending plan for 2026 as Seoul accelerates military independence and artificial intelligence development.
The proposal marks an 8.1% increase from this year, signaling Lee’s intent to reshape South Korea’s strategic and technological future during his first full year in power, News.Az reports, citing foreign media.
A major focus is defense. Seoul will spend ₩66.3 trillion ($46 billion) to dramatically upgrade its military capabilities, modernize weapons systems and move closer to what Lee calls a “self-reliant military.” He reaffirmed his goal to take back wartime operational control from the US before the end of his term in 2030, saying South Korea must not depend on foreign forces for its security.
“Relying on external forces for our defense is a matter that hurts national pride,” Lee told lawmakers, stressing that South Koreans “will not accept a future where their pride is undermined.”
Artificial intelligence forms the other pillar of the budget. Seoul will invest ₩10.1 trillion ($7 billion) to accelerate its AI transition, with the aim of positioning South Korea among the world’s top three AI powers. Lee described the vision as building a “smart and strong” defense and economy powered by advanced technology.
Relations with key global powers also featured in Lee’s address. He highlighted progress in talks with Washington, saying recent nuclear-fuel negotiations had strengthened South Korea’s foundation for defense independence. President Donald Trump recently approved Seoul’s plan to build nuclear-powered submarines after Lee urged access to submarine nuclear fuel.
Lee also cited a tariff agreement with the US that he said has reduced economic uncertainty.
Turning to China, the president pointed to renewed momentum after his first meeting with Xi Jinping at the APEC summit. He said the countries had “fully restored” ties, agreed to deepen cooperation and renewed their currency swap agreement worth ₩70 trillion ($48.6 billion). South Korea and China also signed multiple agreements, including pacts on joint crime-fighting and economic cooperation.
Even as he pushes for a stronger, more independent military, Lee emphasized continued diplomacy with North Korea, vowing to pursue talks alongside Seoul’s defense buildup.
The record-breaking budget marks a defining moment for Lee’s presidency, setting the tone for an era of heightened security ambitions, advanced technology investment and recalibration of alliances in a shifting geopolitical landscape.
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