South Korea is expanding access to free financial counseling for young adults, aiming to address rising concerns about personal debt and financial literacy among those aged 19 to 34. The initiative, announced on , will provide one-on-one guidance from public institutions and financial sector entities, including banks and securities firms.
The move comes as policymakers recognize the growing need to support young Koreans navigating an increasingly complex financial landscape. Many young people are struggling with salary management and accumulating sufficient savings, prompting the Financial Services Commission (FSC) to launch a dedicated task force – the ‘Financial Counseling for All Youth’ TF – to spearhead the effort. The inaugural meeting of this task force was presided over by Vice Chairman Kwon Dae-young.
Previously, free financial counseling was largely limited to residents of the Seoul metropolitan area and those enrolled in the Youth Leap Account program. The FSC now intends to make counseling available to all young people regardless of location or account status. This expansion represents a significant shift towards proactive financial support for the demographic.
The counseling program will operate on two primary tracks: financial assessment and personalized counseling. Individuals can initially submit their financial information online through the Korea Inclusive Finance Agency website. This data will be analyzed to generate a report identifying areas for improvement in their financial health. Based on this assessment, individuals can then access expert counseling services at Inclusive Finance Integrated Support Centers and participating bank branches.
Banks are expected to play a crucial role in the rollout. The Korea Federation of Banks plans to more than tenfold the number of branches offering in-person financial counseling, increasing from the current 20 to over 200 within the current year. This substantial expansion demonstrates a commitment from the banking sector to contribute to the initiative.
Securities firms are also stepping up, recognizing the heightened interest in investment among young Koreans. They are developing mentoring services to provide guidance on investment strategies and risk management. The Korea Financial Investment Association will pilot these consultations through its member firms later this year.
Insurance companies are also participating, with plans to offer face-to-face counseling at their branches and integrate financial counseling with existing financial education programs. The Life and Non-life Insurance Association will conduct pilot programs to test the feasibility of this approach.
The program aims to provide customized financial advice tailored to individual needs. This includes assistance with budgeting, debt management, savings strategies and investment planning. The focus on one-on-one counseling reflects a recognition that generic financial advice is often insufficient to address the unique challenges faced by young adults.
The initiative builds on existing efforts, such as the ‘1939 Youth Financial Counseling’ program, which offers free sessions with professional financial planners from the Korea FPSB. This program, targeting residents of Gyeonggi, Incheon, Daejeon, Gwangju, Daegu, Busan, and Jeonju, prioritizes youth preparing for independence – those transitioning out of child care facilities. A total of 420 participants will be recruited on a first-come, first-served basis.
The broader expansion of financial counseling aligns with the government’s broader economic goals. By improving financial literacy and stability among young people, policymakers hope to foster responsible financial behavior, reduce debt burdens, and promote long-term economic growth. The FSC also indicated that the task force is working to upgrade regulations related to anti-money laundering (AML) and prepare for a mutual evaluation by the Financial Action Task Force (FATF) in 2028, though the direct link to the youth counseling program is not explicitly stated.
the launch of this counseling initiative coincides with the introduction of a new youth savings plan in June, offering the potential to accumulate 20 million won (approximately $15,000 USD, based on current exchange rates) over three years through monthly deposits of up to 500,000 won. This savings plan, coupled with the expanded counseling services, represents a comprehensive effort to empower young Koreans financially.
The success of the program will depend on effective implementation and widespread awareness among the target demographic. The government and financial institutions will need to collaborate closely to ensure that counseling services are accessible, convenient, and tailored to the specific needs of young people. The expansion of in-person counseling locations, particularly through bank branches and securities firms, is a key step in achieving this goal.
