June 13 (Bloomberg) -- South Korea's government is seeking to raise next year's budget by 12 percent from this year, as it spends more on national defense and welfare, Yonhap said, citing the Ministry of Planning and Budget.

South Korea's ministries and organizations are asking for a budget, based on general accounts that exclude government funds and special projects, of 132.2 trillion won ($113.6 billion), up from this year's 118.4 trillion won, the report said. The plan has to be approved by the National Assembly.

The unification and foreign affairs ministries asked for the largest increase, with a combined 17 percent rise in its budget, it didn't specify the amount.

The Ministry of National Defense said on Friday it asked for a 13 percent increase to its budget to 21.5 trillion won from 18.9 trillion won this year, to strengthen the nation's armed forces, days after a U.S. proposal to reduce by a third its troops stationed there.

(Yonhap News, 6-13)

To contact the reporter on this story: Heejin Koo in Seoul at hjkoo@bloomberg.net.

Last Updated: June 13, 2004 01:52 EDT