Japanese Patriot Missile. EPA Yonhap News

The Japanese government is reportedly coordinating its defense budget for fiscal year 2026 (April 2026 - March 2027) to be around 9 trillion yen (approximately 85 trillion won), the highest amount in its history.

According to Kyodo News on the 13th, while the Japanese government is pushing for revisions to its three core security policy documents, it plans to allocate approximately 9 trillion yen for defense in fiscal year 2026 based on the existing documents established in 2022. The budget proposal for fiscal year 2026 is expected to be finalized by the end of this year.

The Japanese government plans to procure long-range missiles and unmanned aerial vehicles (drones) with the substantial budget. Long-range missiles are considered a means of "counterattack capability" to strike enemy bases, while drones will be utilized in building the "Shield" coastal defense system.

Kyodo News reported, "Japan will acquire hypersonic guided missiles, which fly at more than five times the speed of sound and are difficult to intercept," and that the "Type 03 Medium-Range Surface-to-Air Guided Missile," an air defense missile, will be upgraded to intercept ballistic missiles.

Furthermore, the Japanese government plans to establish a new "Space Operations Group" (tentative name) and expand the Air Self-Defense Force into the "Air and Space Self-Defense Force" to strengthen its capabilities in the space domain. A Ground Self-Defense Force unit based in Naha, Okinawa Prefecture, will be elevated from a brigade to a division.

In addition, with the Chinese military's active military operations in the Pacific in mind, Japan will establish a "Pacific Defense Planning Office" to review the Self-Defense Forces' system and continue efforts to improve the treatment of SDF personnel.

Meanwhile, the Yomiuri Shimbun reported that related companies are accelerating personnel expansion and facility investment in line with the Japanese government's defense spending increase and defense capability enhancement policy.

Mitsubishi Heavy Industries, which manufactures fighter jets and warships, forecasts that its defense business sales, which were approximately 500 billion yen (about 4.7 trillion won) in fiscal year 2023, will increase to around 1 trillion yen (about 9.5 trillion won) in fiscal year 2026.

The company plans to increase its number of employees by 40% by March 2027 compared to fiscal year 2023.

NEC, Hitachi, and IHI are also increasing their employees, and Mitsubishi Electric plans to sequentially construct eight new factory buildings.

The Yomiuri reported, "In the past, the defense industry offered little profit for substantial investment, leading companies to withdraw one after another, but the Ministry of Defense is increasing profitability by shortening delivery times," and that with Sanai Takaichi taking office, committed to defense policies, companies expect their orders to expand further.