South Korea Allocates US$100 Million for Ukraine in 2027 Draft Budget

The South Korean government has included US$100 million in financial aid for Ukraine in its draft state budget for 2027. This commitment comes at a time of significant diplomatic friction between the two nations, highlighting Seoul's intent to maintain its support for Kyiv despite recent political challenges.

According to reports from the JoongAng Ilbo, the expenditure was requested by the South Korean Ministry of Foreign Affairs. The funding package is designed to fulfill a pledge made by President Lee Jae-myung during the NATO summit held in July. The report cites the office of Song Seok-jun, Chairman of the Foreign Affairs and Unification Committee of the National Assembly, as well as diplomatic sources.

The budget details indicate a substantial increase in contributions to the NATO Trust Fund for Ukraine. Seoul's planned contribution will nearly triple, rising from US$16.7 million in the current year to US$50 million in 2027. This fund, which has been operational since 2016, is used to rebuild Ukraine and supply non-lethal military equipment. South Korea has been a contributor since 2024, using its funds to support the treatment of wounded soldiers and the construction of military rehabilitation hospitals. In the 2024-2025 period, Seoul transferred US$34 million for these specific purposes.

In addition to the trust fund, the draft budget quadruples funding for targeted humanitarian support projects to reach US$20 million. A further US$30 million has been allocated under a broader assistance program for countries affected by armed conflicts. These humanitarian resources are channeled through the Korea International Cooperation Agency, known as KOICA, and various United Nations agencies, with a particular focus on the United Nations Development Programme.

The humanitarian aid is specifically directed toward healthcare, energy infrastructure, and repairs to educational institutions. This multi-year strategy reflects a long-term commitment to Ukraine's stability and recovery, moving beyond immediate crisis management to structural support.

Despite the clear financial commitment, some South Korean observers have raised questions about the practical effectiveness of the aid. There is concern that the current diplomatic rift may hinder the full utilization of funds or limit the participation of South Korean companies in Ukraine's recovery projects.

Song Seok-jun has urged government officials to maintain bilateral contacts, arguing that recent frictions should not overshadow past cooperative achievements. He emphasized the need for a measured stance that balances immediate relations with medium- and long-term national interests, including future roles in recovery initiatives.

The diplomatic tension stems from events beginning in late September. President Volodymyr Zelenskyy announced at the UN General Assembly on September 23 that Ukraine had handed over two North Korean soldiers to South Korea. These soldiers had fought for Russia and were captured in Kursk Oblast in 2025. The following day, President Lee Jae-myung accused Zelenskyy of disclosing sensitive information and violating agreements. The Ukrainian presidential office responded that no non-disclosure agreements had been signed and that only the fact of the handover was revealed.

The dispute escalated in October. On October 8, the South Korean Foreign Ministry announced the recall of its ambassador to Ukraine, Park Hee-chang. Subsequently, on October 27, Foreign Minister Cho Hyun announced the withdrawal of eight embassy staff members. Seoul also summoned Ukraine's ambassador and threatened further measures if Kyiv did not issue a public apology.

A spokesperson for the South Korean Foreign Ministry stated that the government will continue to adhere to its principled stance on supporting Ukraine, acting as a responsible member of the international community regardless of the bilateral diplomatic climate.