Terms
KAIP typically pays a member $300 (taxable) extra per month for every month that they are in Korea. Over a two year tour, this can amount to an extra $7,200. Some units may allow a member to renew KAIP for a third year. Acceptance of KAIP means losing the chance to take advantage of the follow-on base program. Follow-ons are the number one reason why the soldiers do short tours in the first place. Typically, if a member gains accompanied status (called command sponsorship), then their regular tour is extended to two years. If they sign up for KAIP then it becomes a three year tour.
Some services require the member to accept or decline KAIP before their Permanent Change of Station. Others allow the member the option of signing up after they have been in Korea no more than three months. In that case the KAIP money goes into effect upon signing.
Read more about this topic: Korea Area Incentive Program
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