World · East Asia & Pacific · 2 hrs ago
Loans to South Korean conscripts rise about 70-fold in three years
Loans to South Korean conscripts rose about 70-fold from the end of 2022 to the end of 2025, based on figures from 27 major loan companies.
The total outstanding balance was about 24.2 billion won at the end of 2025 and about 21.4 billion won at the end of June 2026.
By comparison, loans to career military personnel rose 16.6% from 2022 to 2025.
Gambling penalties for Navy and Marine Corps soldiers doubled, from 37 in 2023 to 74 in 2024.
The figures show growing debt and gambling concerns among people serving in the military, though they do not establish that one caused the other.
Lenders had been able to issue loans to conscripts after checking a copy of their salary account, even though their military pay is temporary.
Financial regulators plan to restrict loans to conscripts by revising guidance for loan companies and distributing it by the end of 2026.
They are also considering a legal ban, because the guidance is only a recommendation and carries no penalty for companies that ignore it.
Loans from registered moneylenders to South Korean active-duty soldiers rose about 70-fold from 2022 to the end of last year, according to data submitted to a lawmaker.
The outstanding balance reached 24.188 billion won at the end of last year and stood at 21.354 billion won at the end of June.
Military disciplinary cases involving gambling among Navy and Marine Corps soldiers doubled from 2023 to last year.
Financial authorities are preparing to restrict loans to active-duty soldiers and are considering a legal ban.
- Who
- South Korean active-duty soldiers borrowing from moneylenders, and financial authorities considering restrictions.
- What
- Outstanding loans to active-duty soldiers rose about 70-fold in three years. Authorities are pursuing restrictions and considering a legal ban.
- When
- The loan balance rose from the end of 2022 to the end of last year; it was still 21.354 billion won at the end of June.
- Where
- South Korea.
- Why
- Financial authorities cite soldiers’ temporary military pay as a reason to regulate lending; the article also links rising debt with concern about gambling.
This story does not have two clearly opposing sides.
The outstanding balance of moneylender loans to active-duty soldiers was 346 million won.
Gambling-related disciplinary cases among Navy and Marine Corps soldiers numbered 37.
Active-duty soldiers’ loan balance reached 24.188 billion won, while Navy and Marine Corps gambling disciplinary cases rose to 74.
The outstanding balance of loans to active-duty soldiers was 21.354 billion won.
- Loan balance, 2022 year-end
- 346 million won
- Loan balance, last year-end
- 24.188 billion won
- Loan balance, this year’s end of June
- 21.354 billion won
- Share of military moneylender loans held by active-duty soldiers
- Rose from 2.1% to 54.5%
- Navy and Marine Corps gambling discipline
- 37 soldiers in 2023; 74 last year
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