One-on-one Customized Financial Counseling for All Youth...Bank Branches Expanded to 200 Locations

Inaugural Meeting of the "Financial Counseling for All" TF Held
Number of Bank Branches Offering Financial Counseling to Exceed 200 Within This Year
Financial Counseling to Be Expanded Using Securities and Insurance Company Branches

Financial authorities will provide one-on-one customized financial counseling for all young people, tailored to their income, assets, and debt levels. To this end, they will increase the number of bank branches offering financial counseling services from the current 20 to more than 200 within this year, and will also revamp the financial checkup services within bank applications (apps), which utilize MyData, into youth-tailored services.

On February 10, the Financial Services Commission (FSC) announced that it held the inaugural meeting of the "Financial Counseling for All Youth Task Force (TF)" presided over by FSC Vice Chairman Kwon Dae-young, where participants discussed the implementation direction of the national agenda item "Financial Counseling for All" and measures to revitalize financial counseling for young people across different financial sectors. The meeting was attended by the Financial Supervisory Service, the Korea Inclusive Finance Agency, banking, insurance, and securities industry associations, organizations operating youth financial counseling programs, and related experts.

Vice Chairman Kwon Dae-young referred to President Lee Jaemyung’s emphasis on "opportunities for youth" and stressed that it is important for young people to use finance properly in the process of preparing for employment, starting a business, and investing. He also stated that special consideration should be given so that young people who have relatively limited access to financial services can easily use financial counseling, and that sufficient incentives should be provided so that counseling staff can deliver sincere and thorough counseling.

"Financial Counseling for All" operates in a structure where individuals first identify their own financial situation through a financial checkup and then receive counseling from experts based on the results. When users enter their financial information online on the Korea Inclusive Finance Agency website, a report is generated that analyzes their spending, debt, and savings status, as well as areas that need improvement. Based on this financial diagnosis report, they can receive financial counseling from staff or experts at the Integrated Support Center for Inclusive Finance and at bank branches. The FSC explained that, depending on each young person’s circumstances, tailored counseling can be provided on income and expenditure management, debt and credit management, and asset management.

The FSC plans to significantly expand the program so that any young person who wishes to receive financial counseling will be able to do so. Previously, financial counseling was provided on an emergency basis mainly to some young people in the Seoul metropolitan area, but going forward, the goal is to offer financial counseling to all young people who want it, regardless of region or timing.

To improve accessibility for young people, "visiting financial counseling" will also be expanded. Alongside the on-site counseling operated by the Korea Inclusive Finance Agency, online counseling will be offered in parallel. Starting in the second half of this year, counseling sessions will be held at locations such as cafes near their homes or Integrated Support Centers for Inclusive Finance, reflecting the preferred times and places of young users.

Linkages between financial counseling and related programs such as loans and installment savings will also be strengthened. In addition, to make it easier for young people to access and engage with reliable financial information, an online platform centered on the Korea Inclusive Finance Agency will be established.

Park Joon-tae, research fellow at the Korea Institute of Finance, said, "Financial counseling should not stop at simply providing information; it is necessary to link financial counseling with youth financial products so that young people can translate financial knowledge into sound financial behavior."

The financial industry also plans to expand financial counseling. The Korea Federation of Banks announced that it will drastically increase the number of bank branches offering in-person financial counseling from the current 20 to more than 200 within this year. In particular, to improve accessibility for young people in non-metropolitan regions, it plans to actively utilize regional hub branches such as those located on university campuses. It will also revamp the financial checkup services within major bank apps that use MyData, and is pursuing measures to connect users, after the financial diagnosis, to financial counseling provided by the Korea Inclusive Finance Agency and the banking sector.

The Korea Financial Investment Association plans to pilot financial counseling through securities company branches within this year. The Korea Life Insurance Association and the General Insurance Association of Korea will pilot in-person financial counseling using insurance companies’ branch networks (such as customer plazas), and will also review ways to link existing financial education programs offered by the insurance sector with Financial Counseling for All.

The FSC and related organizations will continue discussions on each task with the goal of announcing detailed implementation plans within the first half of the year, while operating the "Financial Counseling for All TF" on a regular basis.

This content was produced with the assistance of AI translation services.