"At Least 44.4 Billion Won: Soldiers Turning to Loan Sharks for Emergency Cash"... Financial Authorities Offer Incentives for Education Participants

[Financial News] As concerns grow that online gambling addiction and debt-fueled investing among service members have gone too far, the financial authorities announced measures to strengthen financial education for soldiers.
As of the end of last year, the outstanding loan balance to soldiers from the top 30 lenders registered with the Financial Services Commission (FSC) reached 44.4 billion won, the financial authorities said on the 31st. Even after excluding loans from locally registered lenders and lower-ranked firms, the total still exceeded 40 billion won by a wide margin.
The number of soldiers who had their debt restructuring finalized by the Credit Counseling and Recovery Service (CCRS) also stood at 432 last year, amounting to 10.2 billion won. The financial authorities plan to address the exposure of some soldiers to online gambling, debt-fueled investing, high-risk investments and high-interest loans through education and incentives tied to participation. The goal is to improve the effectiveness of financial education for service members.
The financial authorities said they have drawn up measures to strengthen financial education for service members so that military service can become an opportunity to build financial capability and prepare for economic independence after discharge. The plan includes soldier-friendly education, counseling support for problem solving, use of private-sector expertise and infrastructure, and stronger incentives for participation in financial education.
First, the program will use short-form and entertainment-style content to appeal to young soldiers.
The Financial Supervisory Service, the Korea Inclusive Finance Agency and the financial industry will also provide one-on-one customized financial counseling for young soldiers. They will establish a permanent non-face-to-face counseling channel dedicated to service members and also operate in-person counseling centers. Financial counseling is currently being run on a limited basis for 120 people between May and July this year, and more counselors will be hired to expand the program. Online consulting will also help soldiers check their credit status and other financial information on their own.

[email protected] Park Moon-soo Reporter