Although soldiers' salaries have more than doubled over the past three years, enrollment in the 'Soldier Tomorrow Preparation Savings' program—designed to help them build a nest egg for post-discharge life—has plummeted. With the widespread use of mobile phones in barracks, the increased monthly pay is being funneled into high-risk investments like stocks and virtual assets, or even illegal online gambling, raising concerns that the financial safety net for military personnel is under threat.
According to a report by the JoongAng Ilbo on the 2nd, an analysis of data submitted by the Financial Supervisory Service to the office of Democratic Party lawmaker Choi Ki-sang shows that new subscriptions for the savings program at the five major commercial banks dropped by 32.3% over three years, from 361,836 accounts in 2022 to 244,933 last year.
This decline far exceeds the overall reduction in military personnel (approximately 10%) due to low birth rates. Even though the monthly salary for a sergeant was significantly increased from 676,100 won in 2022 to 1.5 million won last year, the trend of avoiding this policy-backed financial product has only intensified.
Changes in fund management due to in-barracks mobile phone usage are cited as a primary cause. The problem is that, lacking financial literacy, many soldiers are suffering losses from leveraged investments, high-risk loans, and illegal gambling.
According to the Ministry of National Defense's 'Survey on Illegal Gambling in the Military,' 64.2% of soldiers who engaged in illegal gambling cited their 'monthly salary' as the source of funds, with an average loss reaching 5.3 million won. As soldiers turn to loans or private lenders to cover gambling debts, the number of active-duty personnel seeking debt adjustment through the Credit Counseling & Recovery Service has reached 1,318 over the past two years (with 30.1 billion won in support), and outstanding loans from private lenders to active-duty soldiers have hit 24.2 billion won, highlighting a serious social issue.
While the government and the Ministry of National Defense have begun implementing measures such as strengthening financial education and offering credit score bonuses for maintaining savings accounts until maturity, there are growing calls for a more fundamental management system.
Lawmaker Choi Ki-sang emphasized the need for a permanent management system that goes beyond one-time education. This includes regularly monitoring early termination rates of savings accounts and loan statuses, and connecting soldiers showing signs of financial distress to counseling and debt adjustment programs early on.
As the issue of gambling and high-risk investments among soldiers follows the trend of youth gambling addiction, it is urgent to prepare comprehensive measures to prevent this from leading to weakened national defense and widespread credit defaults among young adults.
