Seoul’s Defense Ministry said on Tuesday that the navy got permission from the local government to set up the base in Baengnyeong Island at a cost of 42.5 billion wons ($36.6 million).
It added that the 23,489-square-meter base would have a dock for small warships.
Yonhap news agency reported that about 100 troops would be stationed in the new base that would be completed by the end of 2014.
The Yellow Sea boundary drawn by United Nations after the 1950-53 war is disputed by North Korea.
Baengnyeong is one of five South Korean islands near the boundary which was the scene of naval clashes in 1999, 2002 and 2009.
DB/HJL
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