If Soldiers Pay 400,000 Won Monthly, They Can Have a Lump Sum of 10 Million Won Upon Discharge

[Image source=Yonhap News]

[Asia Economy Yang Nak-gyu, Military Specialist Reporter] If military personnel pay 400,000 KRW per month during their service period, they will be able to leave with a lump sum of about 10 million KRW upon discharge.

According to the Ministry of National Defense on the 31st, starting from January next year, a social reintegration preparation fund equivalent to one-third of the principal and interest will be provided from national funds to subscribers of the 'Soldier Tomorrow Preparation Savings.' The Soldier Tomorrow Preparation Savings is a high-interest (around 5%) flexible installment savings product launched through a business agreement between the Ministry of National Defense, the Ministry of Justice, the Korea Federation of Banks, the Military Manpower Administration, and 14 commercial banks in connection with the 2018 soldier salary increase plan.

Based on the Army, if an individual deposits the maximum monthly limit of 400,000 KRW during the mandatory service period of 18 months, approximately 2.48 million KRW of national support funds will be provided, and with the 1% interest paid at maturity, they can leave with about 10 million KRW upon discharge.

The Soldier Tomorrow Preparation Savings applies from the savings made in January 2022, and 209 billion KRW of the defense budget has been allocated to the 'Soldier Tomorrow Preparation Support Project' for the next year alone.

The national support fund applies to both new subscribers and current subscribers and will be provided directly to soldiers via account transfer upon discharge.

Not only active duty soldiers but also full-time reservists, social service agents, converted service personnel (such as compulsory police and compulsory firefighters), and alternative service personnel who receive salaries equivalent to active duty soldiers can subscribe. As of December, there are about 290,000 subscribers.

This content was produced with the assistance of AI translation services.