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As I understand it from spending a tour in Korea as my unit's attaché to the KATUSA they are all very well aware of it, and it is something that is extremely sought after. Even if they don't intend to leave Korea the massive improvement in living conditions for the entirety of their conscription is what drives everyone who makes it towards it. Sadly one of the things I learn from one of the KATUSA I worked with is that it is either told or implied to them that it is only the sons of the elites that will be accepted and that makes a bunch of people back off and not even try to apply for it. Reality is that it is entirely meritocratic and the US Army gives exactly zero fucks who your parents are or how much money and influence they have. The Army wants the strongest, fastest, smartest Koreans they can get their hands on and will treat them exceptionally well.
Not that the Army ever does anything with them. Most of the time KATUSA just end up getting attached to some random unit, have no real work to do, and just end up serving as guides for senior NCOs showing them where the best bars or restaurants are after working hours. They basically spend two years doing that while getting treated to free food and drinks when they get dragged out to serve as translator.