-Writes Yeajin Shim
These days, the extension of retirement age is a hot issue. As Korea is moving toward an aged society at a rapid pace, the financial authorities are preparing for the changing dynamics of the society as well. It’s not only the fast-moving global society but changing financial environment that makes us hard to adapt to it. To put it simple, there is a cycle in the economy where there are both economic boom and bust so that we have to prepare ourselves with financial knowledge to cope with different economic situations. To help us prepared and to provide financial education to those in need, the financial authorities are promoting 9 projects under three major strategies to strengthen Korea’s finance capability.
The first strategy is to establish consistent and systematic financial education system. In the case of developed countries, the government leads financial education by enacting related laws and establishing institutions exclusive for financial education. Like them, there is a need to build social infrastructure to provide such education by the government. Under this strategy, there are three specific projects: establishing financial education system, setting up standard guideline, and providing follow-up education system.
The second strategy is to build financial environment within reach to anybody. No matter when and where, anyone can access to financial education. Things are getting more ubiquitous since they will be provided through online or mobile device. The financial authorities developed a web site (www.금융e랑.kr) which covers overall financial education, application, and a program related to mass media. In case of England and Australia, lifelong financial education is provided through websites called ‘Money Advice Service’, and ‘Money Smart’ respectively. Under this strategy, there are three specific projects: exploiting various media, enlarging the educational range to the rural areas, and special support for those who are in desperate need.
The third strategy is to provide with customized education for the financial customers. The financial authorities are about to analyze customers’ financial capability and education demands so that they can prepare customized education for everyone. Financial literacy will be implemented and financial capability will be divided into 5 groups according to ages: students before entering the university, university students, newly-employed, parents with kids, and the retired. In this strategy, the most important target is those who are alienated from financial education such as the elderly, North Korean defectors, multicultural families, and the unemployed. Education quality will be improved by providing customized and personalized education. Under this strategy, there are also three specific projects: examining financial literacy, analyzing demand, providing with customized education for different age groups, and vitalizing public financial advisory service.
As I was writing the article, I felt that I could also take part in the Financial Services Commission’s efforts to make people feel close to finance by encouraging more and more people to read my article. Recently, I’ve been thinking more often that the financial environment changes so fast that I cannot catch up if I pay no attention to it even for a short while. Then, how would people without financial knowledge manage what they earn? How university students like myself could deal with turbulent financial environment? It’s the FSC that will help us understand more about finance and make it close to within our reach. Ultimately, these efforts will contribute to enhancing the Korean financial capability. You don’t know anything about finance? Customized education is laid out for you already.
By Yeajin Shim (firstname.lastname@example.org)