On January 1st, the first day of the Year of the Horse, Minister of National Defense Ahn Kyu-baek is aboard an Air Force airborne control aircraft (E-737), the 'command center in the sky,' inspecting military readiness and encouraging pilots. [Photo=Yonhap News·Ministry of National Defense]

SBS reported in its New Year's exclusive coverage that frontline units and defense industry companies are experiencing disruptions in budget execution because approximately 1 trillion won in operating expenses and approximately 800 billion won in defense capability improvement expenses, totaling 1.8 trillion won as of the end of last year, have not been released from the national treasury.

This situation has led to the inability to pay for items such as procurement costs, outsourced services, and soldier appreciation event expenses in some units of the Army, Navy, Air Force, and Marine Corps. Furthermore, payments for weapons, executed by the Defense Acquisition Program Administration, have been frozen since the end of the year, causing difficulties for defense companies in paying for materials and labor costs.

Why Did Defense Budget Execution Face Disruptions Despite National Assembly Approval?

According to the report, a key official from the Ministry of National Defense stated on December 31st that approximately 1 trillion won in operating expenses and approximately 800 billion won in defense capability improvement expenses had not yet been received from the fiscal authorities. While some funds were disbursed at the beginning of the year, a significant portion remains unpaid.

SBS reported that amid conflicting explanations from the Ministry of National Defense and the Ministry of Economy and Finance, the possibility of an error in the national treasury information system is even being discussed within the Ministry of National Defense.

If the SBS report is true, it signifies an unprecedented situation where the FY2025 defense budget, approved by the National Assembly, has been halted at the end of the year.

If both operating expenses and defense capability improvement expenses have not been executed, leading to disruptions in military operations and defense contracts, this is not an issue that can be resolved with a simple administrative delay or explanation. It escalates to a matter requiring an inspection of the execution order of the budget approved by the National Assembly itself.

The problem is that these budgets are not new or pending deliberation.

Both operating expenses and defense capability improvement expenses are part of the FY2025 main budget, which has already been approved by the National Assembly and has been executed for nearly a year. If, despite this, key defense budgets were not released from the national treasury at the end of the year, it is difficult to explain solely by accounting techniques or technical reasons.

The only government response to this report so far has been an explanation from the Ministry of Economy and Finance.

The Ministry of Economy and Finance stated that legally, payments can be made until February 10th. However, this explanation did not deny the fact that the defense budget payment was indeed delayed. Rather, it is closer to a defense based on accounting logic that claims it is not illegal.

However, the Ministry of Economy and Finance's response is not sufficient to explain 'why the FY2025 defense budget approved by the National Assembly was halted at the end of the year, and why both operating expenses and defense capability improvement expenses experienced simultaneous disruptions.'

The Ministry of Economy and Finance's reaction is read as circumstantial evidence that increases the likelihood of the report being true, rather than decreasing its credibility.

Indication of Potential Anomalies Across the Entire Defense System

Operating expenses are the budget used for the military to function normally on a day-to-day basis. This includes expenses directly related to unit supply purchases, outsourced maintenance, fuel and various consumables, and soldiers' living conditions. If this budget is blocked, the military cannot avoid immediate operational disruptions.

Defense capability improvement expenses are mid- to long-term investment budgets for the development and mass production of strategic assets such as missiles, fighter jets, and warships. They are strongly characterized by the need to be paid at predetermined times according to already signed contracts. Delays in payment can lead not only to cash flow problems for defense companies but also to issues of trust in the government's contract fulfillment.

The exceptional nature of this incident lies in the fact that both the operating expenses that drive 'today's military' and the defense capability improvement expenses that build 'tomorrow's military' have simultaneously stopped. This suggests a potential for anomalies across the entire defense budget execution system, rather than being an issue with individual projects.

Based on the facts revealed so far, this situation can be narrowed down to three possibilities:

△ The possibility that the nation genuinely lacked the fiscal capacity.

△ The possibility of problems with the system or administrative procedures.

△ The possibility that the funds and system were normal, but execution was suspended due to some decision.

However, one thing is clear regardless of the scenario. There is no scenario where the Minister of National Defense's management responsibility disappears.

If there were no funds, an explanation is required as to why that burden was absorbed by military operational costs. If it was a system issue, an answer is needed as to why there was no immediate response and warning at the ministerial level. If execution was suspended due to a decision, the key issue becomes whether the minister was aware of it and approved it.

This is because the Minister of National Defense is not a victim of the fiscal authorities but the ultimate responsible party for ensuring the military operates normally.

This matter requires simultaneous audits by the Board of Audit and Inspection and parliamentary hearings.

An audit is a procedure to determine at which stage and what was halted in the process of national treasury allocation and payment. A hearing is an occasion for the minister to explain to the public what they knew and what they did in a situation where the execution of the budget approved by the National Assembly led to disruptions in military operations and defense contracts. This is closer to a constitutional responsibility procedure than partisan politics.

Comprehensive evaluation of the circumstances so far indicates that the situation cannot be fully understood solely through the government's explanations. The impression of insufficient explanation is difficult to shake.

If the budget approved by the National Assembly has been halted, and as a result, actual disruptions have occurred in military operations and defense contracts, the Minister of National Defense is the ultimate responsible party to answer for this, yet they remain silent. Why?

By Reporter Kim Young