Financial Education in Korea
Korea Financial Investment AssociationKorea Financial Investment Association
Gun Sang JangVice Chair
March 10, 2011
�Need for Financial Education
�Financial Education in Korea
�Korea Council for Investor Education
�Major Initiatives for Investor Education in Korea
Agenda
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�Major Initiatives for Investor Education in Korea
�Long-Term, Diversified Investment Campaign
�Outcome of Investor Education and Campaign
�Closing Remarks
�Aftereffects of the recent global financial crisis
�Rapidly changing financial environment
�Demographic changes & increased life expectancy
Need for Financial Education
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�Asset management’s shifting paradigm from savings to investment
�New financial products being introduced
� In Korea, investor education plays a leading role in financial education.
� Investor education in the US
� led by non-profit organizations (NGO)
Financial Education in Korea
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� led by non-profit organizations (NGO)
� Investor education in the UK
�government organizations taking the initiative
�Korea developed its own model of investor education.
�KCIE was launched in June 2005.
�Members of KCIE : 7 capital market-related organizations
�KOFIA, FSC, FSS, KRX, etc.
�Secretariat of KCIE : KOFIA
Korea Council for Investor Education (KCIE)
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�Chairman of KCIE : Chairman of KOFIA
�Nationwide Network : 8 major cities
�Objective : To implement systematic and efficient educationprograms
ⅠⅠⅠⅠ. Investor Education Infrastructure
�KCIE is building a strong investor education infrastructure.
�A comprehensive online education system (www.kcie.or.kr)
�A variety of high-quality education content
Major Initiatives for Investor Education (1)
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• Asset management
• Fund investment
• Newly-released financial products and services
• Retirement planning
ⅡⅡⅡⅡ. Customized Education Services
�We provide customized education programs for each age or professional group.
� General public, military and police officers, and employers and
Major Initiatives for Investor Education (2)
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� General public, military and police officers, and employers and employees etc.
�Sophisticated techniques to meet the different educational needs of each target group
ⅢⅢⅢⅢ. Financial Education for the Youth and Less Privileged�We are providing financial education to young people.
�Publishing textbooks for elementary and secondary schools
�Providing various education programs for students
�Training teachers and educating parents
Major Initiatives for Investor Education (3)
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�Training teachers and educating parents
�KCIE operates education programs for the underprivileged.
� Low-income or single-parent families
� Those suffering disabilities
� Social minorities and the financially disadvantaged
ⅣⅣⅣⅣ. International Cooperation for Investor Education
�In February 2010, the Asia Forum for Investor Education (AFIE) was launched.
�31 capital market-related organizations from 20
Major Initiatives for Investor Education (4)
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�31 capital market-related organizations from 20 jurisdictions attended the AFIE inaugural meeting.
�Objective : to promote investor education and facilitate the development of the capital markets across the Asia-Pacific region
ⅣⅣⅣⅣ. International Cooperation for Investor Education
�KOFIA Chairman : the chair of the International Forum for Investor Education (IFIE)
�KCIE and KOFIA published an English version of financial education materials for elementary school students.
Major Initiatives for Investor Education (5)
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education materials for elementary school students.
� A teacher’s book, a student’s book and an online interactive tool
�We are preparing another set of English materials for general investors.
ⅤⅤⅤⅤ. Investor Education Experience Center
�KCIE is also currently building an Investor Education Experience Center.
�Objective : to provide people with hands-on investor education customized for each stage of life
Major Initiatives for Investor Education in Korea (6)
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�Youngsters’ Hall
�20-30 Hall for young adults
�30-40 Hall for the middle-aged
�50-60 Hall for retirees
� International Investor Education Hall : AFIE / IFIE
� Publicity campaigns and promotional advertising for long-term, diversified investment
� “Buy 10 Shares”
� “Saving through Stock Investment”
Long-Term, Diversified Investment Campaign
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� “Create a Long-term, Diversified Investment Culture”
�Main purpose : to ensure the development of a healthy and sound investment culture
� In cooperation with organizations including mass media
�Korea is witnessing a paradigm shift in household asset management.
� From “deposit” to “investment”
�The capital market is becoming an important investment
Outcome of Investor Education and Campaign
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�The capital market is becoming an important investment destination for household assets.
�A long-term, diversified investment culture is taking root.
� Korea is breaking away from the short-term, speculative investment pattern.
� Stock market volatility has been significantly reduced.
� Investor education is a fundamental aspect of capital market development.
� It directly involves building investor confidence.
�Once you lose investor confidence, it takes a great deal of
Closing Remarks
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effort to gain it back.
� Investor education lies at the heart of confidence-building effort.
�Quality investor education will help ensure the development of a sound investment culture.
Thank you!Thank you!