By Anadolu staff

ANKARA (AA) - South Korea on Friday unveiled a 728 trillion won ($524.3 billion) budget for 2026, while the Defense Ministry proposed an 8.2% increase in the defense budget for next year, according to local media.

The proposed budget, approved by the Cabinet, focuses on boosting research and development and artificial intelligence to spur future economic growth, Yonhap News Agency reported.

It is the first full-year budget from President Lee Jae Myung’s administration, which has pledged fiscal expansion to counter mounting challenges such as slowing exports under US tariff measures, a declining working-age population, and weak corporate investment.

It also represents an 8.1% increase from the current year's budget.

The Defense Ministry also proposed an 8.2% increase in defense spending and sought 66.29 trillion won ($47.7 billion) for next year.

The development came after President Lee said during his recent visit to Washington that his country would increase defense spending as part of efforts to play a more “leading role” in maintaining security on the Korean Peninsula.

If approved, it would represent the largest defense budget in the country's history and the fastest annual growth since 2008, when defense spending jumped by 8.7% from a year earlier, according to the report.

Under the proposal, the ministry seeks to boost spending on advanced fighter jets, drones, and robotics to strengthen readiness for future warfare.

The Trump administration has urged allies to spend up to 5% of their gross domestic product on defense, a figure that far exceeds South Korea’s current 2.32%.

The country’s defense budget this year stands at 61.2 trillion won ($44 billion).

South Korea hosts some 28,500 US troops, an arrangement that started in the wake of the 1950-1953 Korean War.