Israel's Daily War Costs Reach Billions of Won... "₩16 Trillion Per Month"
Summary
- Israel’s war expenses reach several billion won each day, and it is estimated about ₩16.4 trillion will be spent in a month.
- The cost of intercepting Iranian missiles is the biggest burden, with each interceptor missile costing from tens to hundreds of billion won.
- The longer the war continues, the heavier the financial burden becomes, and several billion won more will be needed for postwar recovery.
Israel’s war expenses are estimated to reach several billion won each day. The biggest cost is intercepted missiles from Iran. The longer the conflict with Iran continues, the more difficult it will be to bear the financial burden, analysts say.
According to The Wall Street Journal (WSJ) on the 19th (local time), Reichman University Aaron Institute for Economic Policy estimated that if the conflict with Iran lasts for one month, the war costs will total about $1.2 billion (about ₩16.4 trillion).
Experts point out that the most costly part is intercepting Iranian missiles. It is expected that between tens of millions to $200 million (about ₩270 billion) will be needed each day.
According to the Israeli government, Iran recently launched about 400 missiles at Israel. Israel operates the 'David's Sling' system to intercept short- and long-range missiles and drones, and defenses like 'Arrow-3' for long-range ballistic missiles outside the atmosphere.
Yehoshua Kalisky, senior researcher at Israel’s Institute for National Security Studies (INSS), analyzed that operating David's Sling once costs about $700,000 (about ₩960 million), and Arrow-3 costs about $4 million (about ₩5.5 billion) per launch.
Operating Arrow-2, an older model of Arrow-3, costs $3 million (about ₩4.1 billion) per launch.
In addition, flying an F-35 fighter jet costs $10,000 (about ₩14 million) per hour, and there are also expenses for fuel and ammunition.
Even if the war ends immediately, at least $400 million (about ₩550 billion) will be needed for rebuilding destroyed buildings and restoring daily life.
However, there is no sign that clashes between the two sides are de-escalating. Israeli Prime Minister Benjamin Netanyahu has identified Iran’s Supreme Leader Ayatollah Ali Khamenei as a target for removal and is preparing an attack on the Fordow nuclear facility.
Israel is persuading the United States for support, vowing to continue attacks until Iran's nuclear program is eliminated. President Donald Trump has set a two-week deadline for Iran.
Reporter Yonghyun Shin, Hankyung.com yonghyun@hankyung.com
Korea Economic Daily
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