Defense minister Han Min-koo presented the plan on the armed forces' modernization to President Park Geun-hye on Monday.
According to the plan, by 2020s, South Korea will develop a laser weapons system, high-power microwave (HPM) bombs and electromagnetic pulse (EMP) warheads, which will cost $28 million.
After 2020, the laser weapons system will be put into service on South Korean warships.
South Korea will spend almost $19 million to develop drone watercraft able to undertake military operations in the Yellow Sea.
The plan also pays attention to the armed forces' use of emerging technologies such as the Internet of Things (IoT), the minister said.
North and South Korea are technically in a state of war as a peace treaty has not been signed following the end of the Korean War in 1953. North Korea has recently been building up its military defense. Pyongyang most recently held nuclear tests in 2013, while in 2014, the country conducted 108 missile launches.
In January 2014, North Korea's plan to occupy South Korea within seven days by using nonconventional arms, including nuclear weapons, in case of a war was revealed. South Korean authorities stated they were aware of the plan and were intending to develop countermeasures.