Financial Education in Korea Korea Financial Investment Association Korea Financial Investment Association Gun Sang Jang Vice Chair March 10, 2011
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!