South Korea Poised to Cancel Apache Helicopter Deal

Seoul’s plan to acquire 36 additional AH-64 Apache attack helicopters faces cancellation after budget cuts slashed funding to nearly zero.

July 07, 2025Clash Report

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South Korea is expected to scrap its plan to purchase 36 additional AH-64E Apache Guardian attack helicopters following sharp reductions in the defense budget and growing doubts over the battlefield relevance of such assets in the drone-dominated era of modern warfare.

Budget Slashed, Project in Doubt

On July 6, Rep. Yoo Yong-won of the opposition People Power Party confirmed that the National Assembly had cut funding for the acquisition from 10 billion won ($7.3 million) to just 300 million won in a supplementary budget passed two days earlier. The original funds were intended as a down payment toward a deal estimated at over 2.7 trillion won ($2 billion) based on a unit cost of more than 77 billion won per helicopter.

This marks a significant reversal of the second-phase procurement plan, which had been tentatively approved by South Korea’s Joint Chiefs of Staff in May. The approval had been contingent on exploring alternative platforms, including manned-unmanned teaming systems.

Drones Reshape Military Priorities

Critics of the Apache expansion argue that heavy attack helicopters have become increasingly vulnerable, citing their limited survivability in environments dominated by small drones, as evidenced in the Russia–Ukraine war. The growing popularity and cost-efficiency of UAVs—such as the U.S. Army’s Gray Eagle—are fueling a shift in defense priorities.

Rep. Yoo emphasized this point, noting that the cost per helicopter has nearly doubled from 44.1 billion won during the first phase of procurement to 77.3 billion won now. He linked the project to the now-defunct operational concept from the Moon Jae-in administration’s Defense Reform 2.0.

U.S. Pressure May Shape Future

Despite the setbacks, some observers caution that the program might reemerge under pressure from Washington. With President Donald Trump advocating for increased defense contributions from allies, and bipartisan consensus in Washington urging greater South Korean involvement in countering China, discussions surrounding the Apache deal could be revived.

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South Korea Poised to Cancel Apache Helicopter Deal