Page 248 - 2018 Defense White Paper

military residences and off icers’ quarters while providing support for leasing civilian houses, and

preferentially supplied civilian houses to servicemembers to raise the percentage of homeowners
among career servicemembers. In 2017, for the comprehensive and systematic advancement
of the residential support policies, the MND introduced the Comprehensive Development

Plan for Military Residential Policies. The plan will allow the MND to minimize the burden
on the national defense budget while radically improving the level of residential welfare for
servicemembers.

| Tailored Residential Support | The MND plans to raise servicemembers’ and their families’
satisfaction with their residences, and solve the supply–demand imbalance in different areas with

residential supports tailored to the needs of career servicemembers and their families. Previously,
residential support policies were supplier-centered policies implemented under uniform criteria,
which undermined the satisfaction of policy beneficiaries and the eff icacy of budget spending.
Going forward, the MND plans to establish residential support plans tailored to the needs of

benef iciaries and the local characteristics of each region, and use the plans to provide tailored
residential support to improve servicemembers’ satisfaction with the residential policies.

| Diversification of Housing Supply | The MND plans to provide high-quality residential
support by diversifying the supply of civilian houses. Previously, the houses for military
servicemembers were supplied directly through construction, purchases, and Build–Transfer–

Lease (BTL) 12) arrangements. These arrangements require massive f inancial resources and
may result in rapid deterioration without proper maintenance. Going forward, the MND will
diversify the supply of residential facilities through the deposit-based (jeonse) and monthly rent–

based leases of civilian houses to expand the options for benef iciaries. To this end, it realized the
amount of jeonse support and introduced the basis for providing monthly rent support, with
more improvements on the jeonse lease system coming in the future.

12) BTL is one of the civilian investment methods in social infrastructure facilities. In a BTL arrangement, the project
owner commits funds and “builds” infrastructure facilities, “transfers” its ownership to the state or a local
government. In return, the project owner is granted the right to operate the facilities for a set period of time, and
profit from leasing the facilities during the project period specified in MOUs with states and local interferences.

246 Chapter 6 Instilling a High-Morale Military Culture Trusted by the People