According to ChainCatcher citing Yonhap News Agency, South Korea’s Financial Supervisory Service (FSS) plans to work with the Financial Services Commission and banks on consumer-protection rules, including standards to be completed by year-end that would restrict small-loan providers from issuing ordinary credit loans to active-duty soldiers.

Loans to active-duty soldiers from the 30 largest lenders registered with the Financial Services Commission rose from 350 million won at the end of 2022 to 24.2 billion won at the end of 2025. Regulators cited some soldiers’ use of borrowed funds for high-risk investments, including crypto assets, and online gambling as factors contributing to excessive debt.

The FSS also plans to expand flexible bank branch operations and shorten the notification period for long-unused prepaid electronic payment accounts from one year to three months.