Trump: "Next Year's Defense Budget to Reach $1.5 Trillion"...50% Unprecedented Increase

Trump: "Possible Thanks to Tariff Revenue"
Funds to Be Invested in Golden Dome and Golden Fleet Projects

U.S. President Donald Trump announced on January 7 (local time) that he would set next year's defense budget at $1.5 trillion (approximately 2,170 trillion won), more than a 50% increase from the previously planned amount.

President Trump stated on Truth Social that day, "In this very chaotic and dangerous time, I have decided that for the national interest, the 2027 defense budget should be set at $1.5 trillion, not $1 trillion." He added, "With this, we will not only be able to build the 'military of our dreams' that we have long deserved, but above all, we will ensure our safety and security against any adversary."

The defense budget for the 2026 fiscal year (October 2025 to September 2026) is $901 billion (approximately 1,306 trillion won), meaning President Trump is proposing an increase of $600 billion (about 870 trillion won) in just one year. He emphasized, "This is to build the 'military of our dreams' that we have long deserved and to ensure our security against any adversary."

After his re-election, President Trump announced extensive plans to strengthen national defense, including the multi-layered missile defense system project known as the "Golden Dome" and the "Golden Fleet" project, which signals the revival of the U.S. shipbuilding industry. President Trump claimed that the increase in defense spending would be possible "thanks to tariffs and the enormous revenue generated from them."