South Korea Cancels Purchase of 36 Apache Helicopters, Redirects Budget to Enhance Drone Capabilities Against North Korea

The South Korean Ministry of National Defense has decided to cancel its order for 36 AH-64E Apache attack helicopters from the United States and redirect part of the budget towards drone and related systems enhancement. This announcement was revealed by National Assembly member Yoo Yong-won via social media, mentioning that the Joint Chiefs of Staff might have made this decision as early as May.
According to reports, the military's initial budget allocation of $7.2 million was drastically cut to $220,000 and eventually completely removed. Yang Uk, a researcher at the Asan Institute for Policy Studies, noted that this move clearly reflects the reality of limited budget competition, emphasizing that despite the rising significance of drones in warfare, attack helicopters still hold irreplaceable value.
The canceled Apache procurement was initially estimated at $3.5 billion, covering various military equipment and technical support primarily provided by Boeing and Lockheed Martin.
Defense Acquisition Program Administration head Seok Jong-gun had stated that the estimated cost of the new Apache helicopters was around $56 million each, up 66% compared to the first batch delivered in 2017. Furthermore, warnings from the Blue House indicate South Korea's need to bolster its defense capabilities against the drone threat from North Korea.
In response to the emerging threats, South Korea’s defense ministry announced the establishment of a drone operations command in September 2023, specifically to address the drone threat from North Korea.