Financial Supervisory Service Governor Lee Chan-jin is set to conduct financial education for South Korean troops to combat illegal gambling and predatory lending, as reported by Chosun Biz.
Lee will visit the Army’s 31st Infantry Division in Gwangju, South Jeolla Province, on March 30 to deliver a 40-minute session covering topics such as preventing illegal gambling, avoiding high-interest private loans and managing military salaries. The initiative was developed in close coordination with the Ministry of National Defense to safeguard service members from financial exploitation.
The programme follows a similar effort earlier this month by Kim Eun-kyung, head of the Korea Inclusive Finance Agency and chair of the Credit Counseling and Recovery Service, who visited the Army’s 6th Infantry Division to provide economic education. While cooperation agreements between financial agencies and the military have been in place, these visits mark the first time institutional leaders have conducted face-to-face training with soldiers.
Authorities consider military personnel a vulnerable group due to rising monthly pay and increased smartphone usage, which have exposed them to illegal gambling platforms and aggressive lending schemes. Online advertisements for so-called “loyalty loans” and “sergeant loans” reportedly offer borrowing limits between KRW 10m and KRW 15m (US$7,300–US$11,000), with annual interest rates reaching 17.9% to 20%. Meanwhile, the value of debt adjustments for soldiers undergoing restructuring rose to KRW 10.24bn, an increase of 82.5% from KRW 5.61bn in 2021.
The FSS plans to implement a three-stage financial education system this year, guiding service members from enlistment to discharge with training on investment risks, financial management and economic self-reliance.
The initiative underscores South Korea’s broader efforts to strengthen financial literacy and protect young service members from illegal gambling and exploitative lending practices.
According to official data, outstanding personal credit loans held by military personnel totaled KRW 44.4bn (US$32.4m) as of the end of last year
