The Imjin Scout used to be a big thing in Korea, and was one of the un-official but officially tolerated patches in country within the 2nd ID. Notice the Indian Head in the patch. Not something you would normally wear once you left and went to another Command outside of Korea. They indicated the wearer had done the training and patrols within the DMZ or other deserving act in or near the DMZ. I know when I made it to Korea in early 88, they weren't really being worn that much anymore, and had kinda been relegated to the "morale" patch or souvenir patch category.
The JSA is still there, it is the unit that you see standing the line face to face between North and South in Panmunjon. Admittance into the unit was pretty strict on certain standards. Much like the 3rd Infantry Regiment aka "The Old Guard" in Washington. Height and build was once such requirement. They normally wanted taller guys, so that they could tower over the NorK's, etc.. This patch just looks like some local made version from "Adgeema" ( a respectful term that we would use "Ma'am" in English. Or mother, aunt, etc...) in her embroidery/tailor shop.
If you look up the Imjin Scouts you will get better ideas and details on the issue I am sure. Just going off of memory here.