The ban comes after the 27-year-old admitted he falsified records which detailed the amount of community service work he had done.
Military service is compulsory in South Korea with all able bodied men forced to complete two-years in the armed forces.
Athletes can earn an exception if they win a gold medal at the Olympics or Asian Games but must adhere to strict exemption conditions including completing 500 hours of community service.
Jang, 27, has 58 caps for Korea Republic and earned a military exemption after being a part of the side which won the 2014 Asian Games.
A meeting of the Korea Football Association on Thursday made the decision to permanently ban Jang, who played three games for Korea Republic at the 2018 FIFA World Cup in Russia.
Jang apologised for his actions and said he would not contest the ruling.
“I am sorry to have disappointed everyone for such a shameful issue,” Jang said.
Tottenham Hotspur's Korean star Son Heung-Min was the latest high profile player to be given an exception after he played a major role in Korea Republic's Asian Games triumph in Jakarta during September.
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