'A 1.5 Million Won Monthly Salary' Has Become a Poison... Soldiers Leaving the Military in Debt, Loan Balances Top 24.2 Billion Won

[Financial News] As higher military pay and the allowance of smartphone use inside barracks have coincided, the number of active-duty soldiers falling into debt has surged.
According to the Financial Supervisory Service on the 8th, the outstanding balance of credit loans extended to military personnel by the top 30 private lenders stood at 44.4 billion won at the end of last year. More than half of that, or 24.2 billion won, was borrowed by active-duty enlisted soldiers rather than officers, accounting for 54.5% of the total.
The number of soldiers who take out loans but fail to repay them properly is also rising. According to the Credit Counseling and Recovery Service (CCRS), the amount of debt restructuring for military personnel increased from about 5.61 billion won in 2021 to about 10.24 billion won last year, roughly doubling over four years. Debt restructuring is a system that helps borrowers who are struggling to repay by reducing interest or extending repayment periods.
Some analysts say the increase in sergeants' monthly pay has made military personnel a new customer base for private lenders. Soldiers' monthly pay rose from 676,000 won in 2022 to 1 million won in 2023, 1.25 million won in 2024, and 1.5 million won in 2025. It was then frozen at 1.5 million won in 2026 to preserve the pay gap with officers.
Another major factor is that private lenders now accept military salary accounts as proof of income, which has simplified the loan process.
The financial authorities are reportedly pushing to restrict credit loans from private lenders to military personnel. The plan is to block loans backed by salary income.
Lee Chan-jin, Governor of the Financial Supervisory Service, visited the Army's 2nd Operations Command on the day and personally conducted financial education on preventing illegal gambling, stressing the importance of asset management.
However, some in and around the financial sector worry that if loans from private lenders are blocked, soldiers who lose access to formal borrowing channels could turn to illegal private lenders charging rates above the legal maximum.
sms@fnnews.com Sung Min-seo Reporter