South Korean President Lee Jae Myung told lawmakers on Tuesday that the country will double‑down on its plan to build a self‑reliant military while pushing for fresh talks with North Korea. In his annual budget address, Lee urged the government to strengthen national defense, saying that South Korea can’t afford to rely on other countries for its security.
AI‑powered defense
Lee said Seoul aims to turn its armed forces into a “smart and strong” military by using artificial intelligence. The president highlighted new record‑high investment for AI—10.1 trillion won—up from 3.3 trillion won last year, and announced that the government will buy 15,000 new GPUs to train AI models ahead of schedule.
Nuclear‑powered submarines
Last week, Lee’s administration asked former U.S. President Trump to allow South Korea to secure fuel for nuclear‑powered submarines. Trump approved the move, and Seoul has now gained U.S. permission to build the submarines in a shipyard owned by Hanwha Ocean. The president called the progress in U.S.–Korea talks “a foundation for self‑reliant defense.”
New tariff deal with the U.S.
Lee also praised a tariff agreement with the United States that was finalized last week. The deal sets the same tariff levels for key export industries—including automobiles and semiconductors—as those enjoyed by rival countries, giving South Korea a level playing field and reducing economic uncertainty.
Better ties with China
During his first summit with Chinese President Xi Jinping, Lee and Xi declared that bilateral relations were “fully restored” and that the two sides will cooperate strategically as “pragmatic partners.” On the sidelines of the meeting, K‑North and China signed a 70 trillion‑won ($48.6 billion) currency swap line and six additional memorandums covering trade, investment and joint efforts to fight transnational crimes.
Budget for 2026
In his budget speech, Lee outlined a 728 trillion‑won spending plan for 2026, an 8.1 % increase from this year. The defense budget will rise 8.2 % to 66.3 trillion won to upgrade conventional weapons and accelerate “self‑reliant” capabilities. Meanwhile, research and development across strategic sectors—including AI, content and defense—will reach a record 35.3 trillion won, up 19.3 % from 2025.
The administration plans to create a 150 trillion‑won public‑private fund over five years to support future growth sectors.
Political context
Lee has pledged to regain full operational control of South Korea’s military from Washington by the end of his term in 2030. He called for bipartisan cooperation to pass the budget before the December 2 deadline. The main opposition group, the People Power Party, boycotted the speech in protest over a special counsel’s request for an arrest warrant against one of its lawmakers—a move tied to former President Yoon Suk Yeol’s handling of a martial‑law case.
Lee’s address signals a decisive shift toward a self‑sufficient defense strategy, stronger AI investment, and renewed diplomatic engagement both in the U.S. and across Asia.
Source: ianslive
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