The Defense Ministry called for 22.35 trillion won (18.6 billion dollars) in its budget for fiscal 2004, up 28.3 percent from this year's military expenditures.

The 2004 budget includes 8.1 trillion won for the long-term acquisition of new equipment such as missiles, surveillance planes, a military satellite and an Aegis warship.

"The increase in our defense spending reflects our plans to acquire new equipment," a ministry spokesman told AFP, adding the military would relaunch its SAM-X project next year.

South Korea suspended a 1.9-trillion won plan to buy new US Patriot missiles in February when President Roh Moo-Hyun took office, vowing to step up inter-Korean rapprochement.

The SAM-X project is a military effort to bolster South Korea's defense capabilities against North Korean missiles.

"We are not free of threats by North Korea's long-range artillery and missiles," Deputy Defense Minister Cha Young-Koo told a radio program Tuesday, suggesting South Korea could buy Patriot missiles.

"Patriot missiles are not the only such missiles in the world but we know they are good ones," he said.

Next year's defense budget accounts for 3.2 percent of South Korea's gross domestic product, other military officials said, an increase that reflects the relocation of US forces away from the inter-Korean border.

WAR.WIRE