"Salaries Up, but Money Management Lags... Surge in Debt Adjustment Applications Among Soldiers"

Number of Soldiers Undergoing Debt Adjustment Rises 45% in Four Years
Pay Increases and Smartphone Use Lead to Greater Exposure to Investment and Gambling

As the monthly salary for regular soldiers has more than doubled over the past three years, the disposable income of military personnel has increased. However, this has been accompanied by a surge in debt adjustment applications. In particular, concerns have been raised that, since the use of mobile phones was permitted, soldiers have become increasingly exposed to stock and cryptocurrency investments, in-game currency transactions, and online gambling.

Recently, the office of Yoon Han-hong, a member of the National Assembly's Political Affairs Committee from the People Power Party, revealed that 432 active-duty soldiers underwent debt adjustment through the Credit Counseling & Recovery Service last year. This represents a 45.5% increase compared to 297 cases in 2021. During the same period, the total amount of debt adjusted rose from 5.6 billion won to 10.2 billion won. The average debt per person who finalized debt adjustment also increased from 19 million won in 2021 to 24 million won last year.

This change coincides with the timing of the pay raise for soldiers. The monthly salary for sergeants, which was 608,500 won in 2021, surpassed 1 million won in 2023 and reached 1.5 million won last year. The expanded use of mobile phones among soldiers is also seen as a contributing factor. Soldiers are allowed to use their phones after daily duties on weekdays and during holidays, and can now effectively invest by using features such as scheduled trading on stock and cryptocurrency trading applications.

Exposure to online gambling has also increased. According to the Ministry of National Defense, of the 47,357 disciplinary actions for mobile phone misuse within the military between 2020 and 2024, 1,612 cases (3.4%) were related to online gambling. Military prosecution records also showed 437 gambling-related disciplinary cases in the Army, 46 in the Navy, and 27 in the Air Force. The number of criminal cases involving online gambling reached 453 last year, showing an increase compared to 2021, and more than half of those caught were found to have participated in high-stakes gambling with bets exceeding 10 million won.

The nature of debt adjustment is also changing. In the past, most applications were due to pre-enlistment debts that soldiers could not manage due to reduced income. Recently, however, there has been an increase in investment and gambling-related debts incurred during military service. The Credit Counseling & Recovery Service explained, "While more soldiers are saving money due to higher salaries, there are also cases where they fail to manage their finances properly. There is a high risk of becoming delinquent on debts as a result of in-game currency transactions or online gambling via mobile phone."

The Ministry of National Defense has responded, recognizing that a lack of financial knowledge and the risk of addiction could become a safety issue within the military. The government has expanded economic and financial education, conducted a survey on illegal gambling within the military, and revised the 'Unit Management Directive' to include preventive measures.