South Korea to Teach Soldiers About the Risks of Borrowing to Invest

South Korea will expand financial education for military personnel as soldiers accumulate more financial assets but remain vulnerable to risky investments and expensive borrowing.

The Financial Services Commission approved the plan at its second financial education council meeting. It cited higher military salaries and the Soldiers’ Tomorrow Preparation savings program as factors increasing young service members’ financial assets.

Starting in the second half of this year, capital-market lessons will use real cases and practical solutions to explain the risks of online gambling, borrowing to invest, virtual assets, leveraged products and high-interest loans. From next year, securities analysts and private banking professionals will teach asset management and financial investment.

The measures also call for expanded one-to-one counseling on pay, spending and savings plans, with both online and in-person counseling centers. Officials plan to encourage participation through certificates, commendations, awards and financial incentives.

The commission will also examine whether completing the Soldiers’ Tomorrow Preparation savings program at maturity can be reflected in credit assessments as a positive credit history.