Faced with increasing hostility from the north, South Korea is increasing next year's defense budget 2.1 percent (to $102 billion). North Korea spends only a few billion dollars a year, but maintains about a million troops on active duty. The ancient weapons these troops are armed with are still dangerous if the soldiers obey orders to march south. There is increasing doubt about whether the North Korean army would, or could, march south. Declining morale and readiness indicate rapid decline in combat capability.