Pay raise for troops takes toll on military budget

President Yoon Suk Yeol poses for a selfie with soldiers during his visit to the Army’s 25th Infantry Division in Yeoncheon, Gyeonggi Province, Oct. 1. Courtesy of presidential office

A steep increase in soldiers' salary is beginning to take a toll on the military budget, raising concerns about potential setbacks in the Yoon Suk Yeol administration’s plan to raise their monthly salaries to 2 million won ($1,480) over the next couple of years.

During his presidential election campaign, Yoon pledged to raise the monthly wages of conscripted soldiers to 2 million won as a part of his plan to enhance their working conditions. More specifically, he promised to raise the monthly salaries of soldiers incrementally each year to as much as 1.5 million won and offer a separate subsidy of 550,000 won per month by 2025.

Such a plan did see some progress in his first year in office. Beginning this year, sergeants are being paid 1 million won per month ― up from 676,100 won in 2022 ― along with a separate monthly subsidy of 300,000 won, according to the Ministry of National Defense.

Beginning next year, their monthly payments will increase to 1.25 million won along with a 100,000 won raise in the separate subsidy.

"The monthly payment of soldiers will be increased by 350,000 won next year, and we will continue to smoothly carry out our plans to reach the 2.05 million won goal by 2025," Yoon said in his budget speech to the National Assembly, Tuesday, calling for legislative support for the passage of next year's budget bill.

However, concerns are rising within the military that the steep pay raise for soldiers may force the defense ministry to delay spending in other necessary categories.

"I'm not saying that the soldiers don't deserve a pay raise, but we are already seeing some side effects from the excessive wage hike," a military official said on condition of anonymity.

The wage hike for conscripted soldiers is leading to decreased morale among junior military officers who complain that the soldiers' salary, if increased to 2 million won, may exceed their monthly wage that is currently set at 1.8 million won.

The official also expressed worries about the limited financial resources in the defense ministry.

"Increased expenditures for personnel expenses without allocating additional budget to the defense ministry means that the military will have to save money in other categories by putting off spending in other areas such as acquisition programs or advancement of military facilities," he said.

Soldiers participate in a field training contest involving a high-tech combat simulation system in Inje, Gangwon Province, Saturday. Courtesy of ROK Army

Similar concerns were outlined in a report released Monday analyzing the government's budget proposal for 2024 published earlier in the day by the National Assembly Budget Office.

"The rapid hike in soldiers' salaries has led to an increase in overall personnel expenses in the defense budget. This has led to constraints in the allocation of defense funds for other purposes, such as enhancing military capabilities," the report read.

The researchers added that the problem is likely to persist, as it will be highly difficult to lower the salaries once they are raised.

"The increased personnel expenses for soldiers could potentially create difficulties in the allocation of funds in the defense sector, raising the need for strategies to ensure a rational and efficient allocation of resources," the report said.

Amid such concerns, the defense ministry is apparently seeking to cut its budget allocated to enhancing soldiers' welfare for next year, the local daily newspaper Kyunghyang Shinmun reported, Tuesday, citing a report released by the Assembly's National Defense Committee the previous day.

According to the report, the ministry proposed substantial reductions to its budget used to provide soldiers with special holiday meals, birthday cakes, soccer shoes and haircuts, currently set at approximately 180 billion won.

"The president's election promise of monthly salaries of 2 million won by 2025 is, in reality, being implemented alongside the reduction of support programs, which may prompt criticisms that the support provided to soldiers may not actually reach the 2 million won goal," the report read.