Financial Education in Korea - Sayfa Goruntulenemedi · Financial Education in Korea Korea...

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

Korea Financial Investment AssociationKorea Financial Investment Association 1

�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


�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


� 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)


�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)


• 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



� 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



�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



�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.



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)


�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


� “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


�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


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!

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