Taiwan Proposes $31 Billion Defense Budget for 2026 at 3.32% of GDP, Targets 5% by 2030; South Korea-US Alliance Expands

Taiwan has proposed a record defense budget of NT$949.5 billion (approximately US$31.13 billion) for 2026, representing a 22.9% increase from the previous year and amounting to 3.32% of its GDP. This marks the highest defense spending level for Taiwan amid ongoing pressure and daily air and sea patrols by China, which claims the island as its territory. Taiwan’s overall national budget for 2026 is NT$3.35 trillion. President Lai Ching-te has set a new target to increase defense spending to 5% of GDP by 2030, reflecting the government's commitment to strengthening self-defense capabilities in response to regional security challenges. The United States has encouraged Taiwan to invest more in its own security. Meanwhile, South Korea’s President Lee has emphasized that the South Korea-US alliance will encompass cooperation in security, technology, and the economy, indicating a broader regional focus on defense and economic collaboration.