Military Loans from Moneylenders Reach 44.4 Billion Won... FSS Urges Restraint in Aggressive Marketing to Active-Duty Soldiers

The outstanding loan balance for military personnel handled by major registered moneylenders stood at 44.4 billion won as of the end of last year, with more than half of this amount attributed to loans for active-duty soldiers.

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On March 8, the Financial Supervisory Service announced the results of its investigation into the business practices of the top 30 moneylenders registered with the Financial Services Commission in relation to loans provided to military personnel.

According to the survey, the outstanding balance of personal credit loans by these 30 moneylenders at the end of 2025 was 2.6924 trillion won, of which 44.4 billion won was lent to military personnel. By service type, loans to active-duty soldiers accounted for 24.2 billion won, representing 54.5% of all military loans and making up the largest share. This was followed by 15.8 billion won (35.7%) for career military personnel such as officers and non-commissioned officers, and 4.4 billion won (9.8%) for cases where no service type was specified.

This investigation was conducted amid recent cases of some military personnel turning to moneylenders to raise investment funds, as well as a rise in the amount of debt adjustment among soldiers. According to statistics from the Credit Counseling & Recovery Service, the amount of debt adjustment for military personnel nearly doubled from 5.6 billion won in 2021 to 10.2 billion won in 2025.

The Financial Supervisory Service urged the moneylending industry to refrain from aggressive marketing targeting active-duty soldiers, to prohibit excessive lending, and to strictly comply with related laws such as the Lending Business Act in order to prevent harm to borrowers.

In addition, through the Korea Loan Finance Association, the agency plans to emphasize legal compliance-including bans on false or exaggerated advertising-to local government-registered loan brokerage firms, which serve as loan recruitment channels. It will also communicate relevant information to the responsible local governments to strengthen oversight and supervision.

A spokesperson for the Financial Supervisory Service stated, "We will provide guidance to military personnel regarding precautions related to moneylending, and strengthen financial education on the risks of high-risk investments and illegal gambling."

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