ANKARA

South Korean President Lee Jae Myung unveiled his administration’s first budget Tuesday -- a 728 trillion won ($505 billion) spending plan for 2026, marking an 8.1% increase from this year.

For defense, the Lee administration allocated 66.3 trillion won ($46 billion), up 8.2% from this year, to upgrade conventional weapon systems to cutting-edge capabilities and accelerate the realization of a “self-reliant defense,” according to Yonhap News Agency.

“Relying on external forces for our defense is a matter that hurts national pride,” Lee said, vowing to retake wartime operational control from the US within his term, which ends in 2030.

The government will also allocate 10.1 trillion won ($7 billion) to accelerate artificial intelligence (AI) transformation, aiming to make South Korea one of the world’s top three AI powers.

During his budget speech in parliament, Lee also pledged to intensify efforts toward building a self-reliant military while continuing diplomatic efforts to resume talks with North Korea.

He said South Korea aims to transform its defense force into a “smart and strong” military through the use of AI technology.

“We will significantly strengthen our national defense capabilities and make sure to realize our hope for self-reliant defense,” he said, adding that “our people's pride will be undermined if South Korea continues to rely on foreign nations for its defense.”

He also referred to progress in talks with the US, saying: “Progress in consultations on the supply of nuclear fuel for nuclear-powered submarines has strengthened the foundation for self-reliant defense.”

Last week, Lee asked US President Donald Trump to allow South Korea to acquire fuel for nuclear-powered submarines. In return, Trump approved a plan for South Korea to build nuclear-powered submarines.

Lee also said that a recent tariff deal with the US had eased economic uncertainties.

He also spoke about his first meeting with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit last week, saying the two countries had “fully restored” bilateral relations and agreed to work together as “strategic cooperative partners” on a path of “pragmatism and mutual benefit.”

South Korea and China also renewed their bilateral currency swap agreement for another five years, maintaining the maximum value at 70 trillion won ($48.6 billion), and signed six memorandums of understanding, including agreements on economic cooperation and joint efforts to combat transnational crime.