LEAD) S. Korea seeks smallest rise in defense spending in over decade

((ATTN: RECASTS lead, headline; UPDATES with comments from vice defense minister;
ADDS background)
By Sam Kim
SEOUL, Sept. 28 (Yonhap) -- South Korea said Monday it is seeking a 3.8 percent
rise in defense spending for next year, the smallest hike in over a decade amid
economic difficulties weighing on the country.

The Ministry of National Defense said in a release that it plans to submit a
proposal for a 3.8 percent budget increase for 2010 to the National Assembly on
Oct. 1.
The proposal is a setback for the ministry that in June sought a 7.9 percent
hike, which would have seen it reach annual expenditure of over 30 trillion won
(US$25 billion) for the first time.
The readjustment to 29.6 trillion won marks the smallest increase in defense
spending since 1999 when it increased by only 0.4 percent, according to the
ministry.
"The proposed increase may further be compromised when it undergoes a
parliamentary review in the next few months," Vice Defense Minister Chang Soo-man
said in a briefing, pledging efforts against such a slash.
"Economic difficulties have across the board put pressure on the government
budget," he said, adding wages will widely be frozen to make up for the
compromise in the defense area.
Defense spending is a key area of interest for South Korea that has 655,000
troops facing North Korea's 1.2-million-strong army.
The ministry argued earlier this year that it needed a hike comparable to
previous ones so it could deal with the rising threat of North Korea's missile
and nuclear programs.
North Korea in April launched a rocket that neighbors fear could be developed
into a long-range ballistic missile and conducted its second nuclear test the
following month. The two Koreas remain technically at war after the 1950-53
Korean War ended in a truce.
Chang pledged Monday that the compromise in spending will not lead to a
compromise in its main defense systems against North Korea's nuclear and missile
threats.
Aegis combat destroyers, missile interceptors and early warning radars against
ballistic missiles will be assigned priority, he said.
"Belt-tightening measures will be put into action so we won't have to sacrifice
our warfighting capabilities," Chang said.
The defense spending readjustments came after a row last month in which then
Defense Minister Lee Sang-hee expressed dissatisfaction over the planned cut in a
letter to President Lee Myung-bak.
The minister, who was already considered likely to be moved in a wide government
reshuffle, was sacked earlier this month and replaced by Kim Tae-young, former
chairman of the Joint Chiefs of Staff.
"Despite the reduction in the rate of increase, the new budget will sufficiently
help defense projects to be pursued in a stable manner," the ministry said in the
statement.
Spending on research and development in weapons systems will increase from 5.6
percent to 6.1 percent of the budget, amounting to 1.7 trillion won, the ministry
added.
"Fifty-nine development projects will continue to be pursued, including those on
medium-range surface-to-air guided missiles, unmanned medium-altitude aerial
vehicles, the Tactical Information Communication Network, FA-50 attack aircraft
and indigenous helicopters," it said.
The South Korean government said in a separate release that it plans to raise its
entire budget spending for 2010 by 2.5 percent.
According to the Ministry of Strategy and Finance, the nation's expenditure will
amount to 291.8 trillion won, compared with 284.5 trillion won set aside for this
year.
Defense spending had increased by 7.1 percent in 2009. The steepest rise was in
2005 at 11.4 percent.
samkim@yna.co.kr
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