[2023 Budget] President Includes '3 Major Cash Pledges'... Soldier Salary Gradually Raised to 2.05 Million Won

[Asia Economy Sejong=Reporter Kim Hyewon] 'Monthly parental allowance of 1 million KRW for infants aged 0, soldier salary of 2.05 million KRW, basic pension increased to 322,000 KRW.'

The government’s budget plan for next year, finalized on the 30th, includes all three major cash pledges made by President Yoon Seok-yeol during his candidacy. Although there are some differences in amounts and timing, these will be allocated as national agenda budgets and executed in phases.

The most notable budget project is the increase of soldier (sergeant) salaries to 2.05 million KRW (including 550,000 KRW social advancement support) by 2025. The government plans to raise the current soldier salary of 820,000 KRW this year to 1.3 million KRW next year and 1.65 million KRW the following year, ultimately matching President Yoon’s pledge of over 2 million KRW.

The issue lies in the enormous funding required and fairness debates with military civilian employees (gunmuwon). The additional budget allocated to raise soldier salaries to 1.3 million KRW next year is about 1 trillion KRW. Furthermore, if soldier salaries reach the 2 million KRW range, the gap with the lowest rank among non-commissioned officers, corporal (step 1), whose monthly salary is 1.7054 million KRW, will widen, causing some military civilian employees’ salaries (excluding various allowances) to be surpassed. This means soldiers’ monthly pay will exceed that of general grade 9 public officials.

President Yoon’s other cash pledge to provide 1 million KRW monthly to parents of newborns aged 0 to 11 months is also included in the national agenda budget. The system will be newly established next year, providing 700,000 KRW monthly, and in 2024, 1 million KRW monthly, totaling 12 million KRW annually. The budget for this will increase about 4.4 times from 373.1 billion KRW this year to 1.6249 trillion KRW next year.

The basic pension support for the elderly will be raised from 308,000 KRW per month to 322,000 KRW next year. Although this is a retreat from the original pledge to raise it to 400,000 KRW, the budget increase related to this next year will reach 2.4164 trillion KRW.

In addition, the 110 national agenda budgets selected by the Presidential Transition Committee, including youth cost-price housing and first home supply near subway stations (54,000 units in 2023, 500,000 units by 2027), and the introduction of the Youth Leap Account, have been allocated about 11 trillion KRW for next year. Over five years until 2027, the Yoon administration plans to invest 209 trillion KRW in national funds for these national agendas.

Kim Wan-seop, Director of the Budget Office at the Ministry of Economy and Finance, explained regarding the national agenda budget, "Next year’s budget was organized at about 11 trillion KRW, reflecting the first-year costs of the initial (investment) plan without fail," adding, "New projects may start from 2024, and the scale of investment will increase over time."

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