South Korea will boost its military budget by seven percent next year, the biggest yearly increase in nine years, Newsline reported on Wednesday. This budget raise creates an opportunity for Israeli defense companies to enter and expand their operations in the country.
Amid heightening tensions following North Korea's ICBM test last week, the National Assembly passed the annual budgetary plan for next year, allocating almost $40 billion to defense spending. More than a quarter of the budget will be spent to ramp up defense capabilities against nuclear and missile threats from the North, JoongAng Ilbo reported.
According to the report, $310,000 will be dedicated to a special mission brigade, composed of 1,000 and tasked with eliminating North Korea’s leadership in contingent situations. Other portions of the budget will be allocated to the development of missile defense systems, the upgrading of 230mm rockets layout, and the development of new weapons. The military will also raise the monthly wage for its soldiers