South Korea's General Government Expenditures on Defence have shown a general downward trend over the past decade. The expenditures decreased from 8.15 units in 2013 to 7.63 units in 2023, indicating a decline of approximately 6.4% over these years. Year-on-year, the largest drop was observed between 2016 and 2017 with a 4.15% reduction. Modest increases in 2018 were countered by overall decreases from 2019 onwards. The Compound Annual Growth Rate (CAGR) for the most recent five years is -0.49%.
Forecasts suggest a continued decline in defence spending, although at a slightly slower rate. By 2028, expenditures are expected to fall to 7.55 units, reflecting a forecasted five-year CAGR of -0.16%.
Future trends to watch for include geopolitical tensions in the region, changes in South Korea’s economic conditions, and governmental policy shifts which could impact defence budgets. Additionally, advances in defence technologies and international relations may also play significant roles in shaping future defence expenditure trends.
