South Korea's Ministry of National Defense is introducing a new savings program to encourage long-term military service among officers.
The ministry announced on the 24th that it will launch the "Long-term Officer Leap Savings" program, which matches government contributions to monthly deposits of up to 300,000 won ($220) made by officers selected for long-term service.
An officer depositing 300,000 won monthly for three years would receive approximately 23.15 million won at maturity, comprising 10.8 million won in principal, 10.8 million won in government matching funds, and about 1.55 million won in interest. The program mirrors the "Military Tomorrow Preparation Savings" scheme that has been available to enlisted soldiers since 2018.
Eligibility is limited to officers and non-commissioned officers selected for long-term service after December 1 last year. Enrollment opens on the 3rd of next month.
The ministry signed partnership agreements with Kookmin Bank, Shinhan Bank, Industrial Bank of Korea, Hana Bank, and the Military Mutual Aid Association to implement the program.
The ministry is also pursuing broader compensation improvements for military officers.
Base pay for entry-level officers, including second lieutenants and staff sergeants, will increase 6.6% this year, exceeding the standard 3.5% raise for civil servants. The ministry plans to negotiate with fiscal authorities to raise entry-level officer annual salaries to approximately 40 million won—comparable to mid-sized company starting salaries—by 2029.
The ministry also aims to raise compensation for mid-career officers at the rank of first lieutenant, sergeant first class, and above to levels comparable to similarly experienced workers at mid-sized companies. Additionally, short-term service incentive payments will be expanded to include post-graduate officer candidates, civilian-recruited non-commissioned officers, and new ROTC non-commissioned officer applicants.