Defense budget backlog stalls payments for discharged soldiers
Delays in year-end defense budget disbursements have spilled over from government accounts into the lives of individual soldiers, with thousands of recently discharged service members receiving their government-backed, interest-accruing savings deposits later than scheduled. The Ministry of National Defense said payments under a government-backed savings program, which provides enlisted soldiers with a lump sum upon discharge, were delayed by around a week for roughly 15,000 soldiers who completed their service in December. Defense officials attributed the delay to a disruption in the flow of defense funds at the end of the fiscal year. The defense ministry said the required budget was transferred from the finance authorities in two installments, with the final installment arriving close to the Bank of Korea’s year-end settlement deadline, leaving little time to process payments. While the government has framed the issue as a temporary liquidity problem, this explanation has done little to ease the frustration among soldiers and their families. On online community forums, the delay was
Jan 6, 2026By Bahk Eun-ji