[Yang Nak-gyu's Defence Club] Side Effects of Soldiers' Salaries

Declining Application Rates Among NCOs and Officers Feeling Deprived
Raising Junior Officers' Salaries Could Lead to Four-Star Generals
Over 5 Trillion Won Additional Defense Budget Needed Beyond Initial Estimates

The side effects of President Yoon Suk-yeol's pledge to raise soldiers' monthly pay to 2 million won are growing. As soldiers' salaries increase, it has resulted in the departure of non-commissioned officers (NCOs) and officers, who form the backbone of the military. In response, the Ministry of National Defense has stated its intention to raise the salaries of NCOs and officers as a preventive measure, making additional budget allocations inevitable if salaries across all ranks are sequentially increased.

According to the Ministry of National Defense on the 4th, a soldier who enlisted in January this year and serves for 18 months will receive an average monthly pay of 1,215,689 won (average monthly salary of 860,000 won + matching support fund of 342,027 won). The total amount received over 18 months is 21,882,400 won.

A corporal (1st step) commissioned in January this year receives an average monthly pay of 2,865,772 won (basic pay 1,787,701 won + allowances 805,164 won + overtime pay 272,907 won). After deductions for taxes and military pension contributions, the net monthly pay is 2,580,557 won. The net amount received over 18 months is 46,450,260 won. If a newly commissioned second lieutenant works 28 hours of overtime, the average monthly net pay becomes 2,695,190 won. The Ministry of National Defense explains that even with the increase in soldiers' pay, their salaries are still not higher than those of junior officers.

However, if President Yoon Suk-yeol's pledge of "soldiers' monthly pay of 2 million won" is realized, the salaries of NCOs and soldiers could be reversed. The government announced in last year's 2023-2027 Defense Mid-term Plan that soldiers' pay would be increased to 1.5 million won by 2025. Additionally, there is a plan to provide a monthly "Tomorrow Preparation Fund" of 550,000 won, which functions like a savings scheme.

Side effects have emerged from the "soldiers' monthly pay of 2 million won" policy. The recruitment rates for NCOs and officers have sharply declined. Last year, the Army, Navy, and Air Force planned to recruit 11,107 NCOs but only filled 9,211 positions (82.9%). Among the three branches, the Army had the lowest NCO recruitment rate at 77.1%. The Air Force recorded 105%, and the Navy 88%.

The ROTC is experiencing a similar trend. Last year, the recruitment rate for Army, Navy, and Air Force ROTC was only 2.39 to 1 (quota 3,511, applicants 8,405), about half of the 3.95 times in 2016. Many universities are failing to fill their quotas.

Inside and outside the military, there is a growing stance to raise the salaries of junior officers as much as those of enlisted soldiers. In particular, there is a need to enhance the economic compensation for second lieutenants. However, if junior officers' salaries are increased, it would necessitate sequential pay raises up to four-star generals.

During his candidacy, President Yoon Suk-yeol stated, "Guaranteeing soldiers' pay at the minimum wage level would require an additional 5.1 trillion won," which accounts for about 9% of the defense budget. However, if junior officers' salaries are raised and pay increases are extended sequentially up to four-star generals, it is expected that more than 10 trillion won in additional budget will be required.

A military official said, "To secure the talent necessary for building a strong military in a timely manner, there is a growing voice to consider increasing soldiers' pay and enhancing the economic compensation for junior officers, especially second lieutenants," adding, "This will create economic compensation issues."