Ministry of National Defense flag at the War Memorial of Korea in Yongsan-gu, Seoul / News1

South Korea's Department of Defense (DoD) is set to overhaul its current relocation assistance program for service members and civilian employees. The initiative aims to emulate the U.S. military's Government Housing Contract (GHC) system, which streamlines the entire moving process from packing to transportation and storage.

Military sources revealed on Tuesday that the DoD has commissioned a study titled, <em>Research on Enhancing Relocation Support for Military Personnel Welfare</em>.

Under existing regulations, service members and DoD civilians are eligible for partial reimbursement of moving expenses when relocating due to permanent change of station (PCS) orders or operational requirements. The current system operates on a distance-based fixed-rate model. DoD analysis shows that the reimbursement rate covers approximately 80-90% of contractor estimates on weekdays and 76% on holidays, leaving personnel to cover any remaining costs out-of-pocket.

The current system requires individuals to arrange their own moves, leading to time-consuming tasks such as consultations and obtaining estimates. Many service members report significant inconvenience due to these additional procedures. Further complications arise from limited moving company options in remote areas, driving up costs, and a cumbersome claims process for damaged items.

Through this study, the DoD aims to explore private sector moving solutions tailored to military needs and domestic logistics realities. The department may look to the U.S. military's former use of a private consortium model for PCS moves as a potential blueprint.

In 2021, the U.S. Department of Defense awarded a contract worth up to 17.9 billion USD to HomeSafe Alliance, a joint venture of moving companies, to provide comprehensive relocation services for troops and their families over nine years.

The previous system required service members to coordinate separately with multiple vendors for packing, shipping, and storage, complicating the process and liability issues. The consolidated approach aimed to enhance efficiency and improve quality of life for military families.

However, in January 2025, the Pentagon terminated its contract with the consortium due to performance issues, including lost items and communication breakdowns. The DoD now plans to establish a permanent organization under the Personal Property Activity (PPA) to manage PCS moves, set to launch in the first half of this year. These developments will likely inform the ongoing study and shape future improvements to the military's relocation support system.

South Korea's Department of Defense (DoD) is set to overhaul its current relocation assist …

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