Financial Planners Gain More Attention During Recession... Increased Need for Financial Planning Due to COVID-19

Kim Yong-hwan, Chairman of Korea FPSB

[Asia Economy Reporter Kim Min-young] There is a certification exam that gains attention during economic downturns. It is the financial planner exam. During the 2008 global financial crisis, the Certified Financial Planner (CFP) became popular in the United States. This was because the demand for comprehensive financial planning services that professionally manage individuals' assets surged in the worsening U.S. economy. The same applies to South Korea. The AFPK, a domestic financial planning certification system, has seen an increase in examinees during times of crisis.

According to the Korea FPSB, the organization that administers this exam, the financial planner certification system was introduced in 2000 following the late 1990s foreign exchange crisis, as the need for household financial experts emerged. During the 2008 global financial crisis, the AFPK exam participation rate rose significantly. After reaching its peak in 2010, the number of test takers gradually declined, but interest in the exam grew again in 2018 as the financial market became unstable.

Last month, when the COVID-19 pandemic was spreading, about 30% more candidates took the AFPK exam compared to the previous test.

Kim Yong-hwan, chairman of Korea FPSB, emphasized, "The role of CFP and AFPK certified professionals as clients' financial doctors becomes more important when economic crises and financial market uncertainties increase."

Meanwhile, the AFPK exam, which was postponed due to COVID-19, will begin additional registration along with the CFP exam starting on the 27th. The 75th AFPK exam is scheduled for the 30th of next month, and the 37th CFP exam will be held on July 11-12.