Drowning in Financial Leverage: The Hidden Risks Behind Student Loan Investments
Kicker: COVER STORY Drowning in Financial Leverage: The Hidden Risks Behind Student Loan Investments By Eun-jin Kim, Cub-Reporter eunxvn@naver.com On many Korean campuses, a new financial habit is spreading quietly among students. Instead of using student loans only for tuition or living costs, an increasing number of young people are borrowing money from the Korea Student Aid Foundation, commonly called KOSAF, and putting it into stocks or cryptocurrency. This trend, informally called “loan investing,” is growing because KOSAF loans are far easier to access than bank loans. The fixed interest rate is low and borrowers do not have to start repaying until they find a job and earn enough money. For cash-strapped students who want to enter the booming stock market, this loan can feel like free capital rather than a serious debt. However, financial experts warn that this comfortable structure hides a dangerous trap. When markets fall, students who borrowed to invest can lose both their principal and their ability to repay, turning what was meant to help them study into a heavy financial burden that follows them into adulthood. Why Student Loans Look Like Easy Money Image of the Korea Student Aid Foundation (KOSAF) website showing its 2026 second-semester loan interest rate table The appeal of KOSAF loans comes directly from their structure. Unlike commercial bank loans, KOSAF offers a fixed annual interest rate of only 1.7%, and students do not need a credit check or a co-signer to apply. Undergraduate students can also borrow up to 24 million won in total for living expenses during their entire degree, in addition to full tuition coverage. More importantly, the “employment-linked repayment” program allows students to delay repayment until their annual income exceeds about 30.37 million won. In practice, this means many students carry the loan for years without paying a single won toward the principal. For a generation watching stock indexes rise and hearing stories of friends who made quick profits, these conditions look like an opportunity rather than a burden. Because the loan is disbursed directly into a personal bank account, some students transfer part or all of it into a brokerage account soon after receiving it. Since there is no immediate repayment pressure, the psychological distance between “borrowed money” and “my money” quickly narrows, encouraging riskier investment decisions than students might otherwise make. When Leverage Turns Into a Debt Trap The consequences of this trend are already visible in official data. According to an analysis by a member of the National Assembly’s Political Affairs Committee, based on data from South Korea’s Financial Supervisory Service, the balance of margin loans* held by investors in their twenties surged from about 188.8 billion won in April 2025 to 423.9 billion won in April 2026, an increase of roughly 124.5%, or 2.24 times, in just one year. This was the sharpest increase among all age groups, well above the market-wide average growth rate. Margin loans allow investors to borrow money from securities firms to buy more stock than their own cash would allow, which means both potential gains and potential losses are magnified. The danger becomes clear when stock prices drop. If the value of an investor’s holdings falls below a certain level, brokerage firms automatically sell the shares to recover their loan, a process called a forced liquidation. For young investors with little income and no financial cushion, a single forced liquidation can wipe out savings and leave them owing money they cannot repay. This risk is not only theoretical. Financial Supervisory Service data show that people in their twenties registered as credit delinquents reached 65,887 by July 2025, a 25.3% increase from 52,580 at the end of 2021, with unpaid stock and cryptocurrency investments cited as a major cause. Mobile Apps Make the Risk Feel Smaller Part of the problem lies in how easy investing has become. Mobile trading apps, or MTS, now let anyone buy or sell stocks within seconds using a smartphone. Many securities firms have added game-like features to these apps, such as badges for “top 1% returns,” push alerts for every price movement, and screens showing how much a stock has risen since a user sold it. Experts say these features are designed to keep users opening the app, but they also make investing feel more like a game than a financial decision, weakening users’ sense of risk. In response, financial authorities and student support agencies have started strengthening protective measures. Since 2022, KOSAF and the Credit Counseling and Recovery Service have allowed students struggling with loan payments to apply for combined debt adjustment, which can reduce the principal by up to 30% and extend repayment periods up to 20 years. Lawmakers have also called for stricter monitoring of brokerage firms and expanded financial education for young borrowers, warning that reckless loan investing could become a wider social risk rather than just a personal one. These cases show that a student loan is not simply free money; it is borrowed money that must eventually be repaid, and it can grow far heavier if it is used for speculation rather than for its original purpose. Learning to manage money responsibly, understanding investment risk, and building steady saving habits are skills every young adult needs long before they earn a full salary. A single semester of easy credit should never outweigh years of financial stability, yet that is exactly the trade many students are unknowingly making when they treat a student loan as investment capital. In the end, university students should remember why KOSAF loans exist in the first place: to support education and basic living costs, not to fund short-term bets on the market. Only by using borrowed money for its intended purpose and building healthy financial habits early can young people achieve real, lasting economic independence instead of starting adulthood already trapped in debt. Sources: Polinews, “[Issue] Margin loan balance nears 35 trillion won as loans among people in their 20s surge,” Apr. 29, 2026. (www.polinews.co.kr) Smart FN, “Credit delinquents in their 20s driven by ‘loan investing’ top 60,000,” Dec. 15, 2025. (www.smartfn.co.kr) eToday, “Turning investment into a game: the ‘risky design’ of brokerage MTS apps,” May 20, 2026. (www.etoday.co.kr) Korea Student Aid Foundation (KOSAF), 2026 second-semester student loan guidelines, via Seoul National University notice. (ie.snu.ac.kr) Financial Services Commission, press release on the KOSAF–Credit Counseling and Recovery Service debt adjustment agreement. (fsc.go.kr) Korea Student Aid Foundation (KOSAF), www.kosaf.go.kr
DEBATE
Beyond the Shortcut: Navigating the Ethical Use of Generative AI in Academic Tasks
Kicker: DEBATE Beyond the Shortcut: Navigating the Ethical Use of Generative AI in Academic Tasks By Seung-su Kim, Cub-Reporter seungthlng14@gmail.com Generative Artificial Intelligence As generative artificial intelligence tools like ChatGPT become deeply embedded in everyday academic routines, university students find themselves navigating an unprecedented technological shift. What began as a novelty has rapidly evolved into a primary assistant for drafting, brainstorming, and structuring assignments across campus. While these powerful tools offer remarkable efficiency and lower the barrier to complex problem-solving, they simultaneously spark critical conversations regarding academic integrity and the true meaning of independent learning. Rather than viewing AI as a shortcut that bypasses intellectual effort, the campus community now faces the urgent task of redefining these technologies as collaborative partners. Establishing clear guidelines and ethical frameworks is no longer optional; it is essential to ensure that technological advancement enhances—rather than diminishes—the core value of higher education. Redefining AI as a Learning Partner, Not a Substitute As artificial intelligence permeates higher education, students are increasingly utilizing these tools to streamline their academic workflows, ranging from organizing dense lecture notes and translating scholarly articles to outlining comprehensive research papers. However, academic departments and faculty members emphasize that the true pedagogical value of AI lies in its capacity to serve as a supportive co-pilot rather than an automated replacement for critical thinking. Instead of relying blindly on algorithmic text generation to complete assignments wholesale, responsible learners are discovering how to harness AI for diagnostic feedback, structural critique, and conceptual brainstorming. This balanced approach allows students to leverage technological efficiency while ensuring that their own analytical skills, unique voices, and intellectual insights remain at the center of their academic development. Furthermore, educational specialists argue that treating AI as an interactive tutor rather than an answer machine fosters a deeper engagement with the subject matter, teaching students how to prompt, evaluate, and refine information critically. Practical Guidelines and Institutional Frameworks To prevent the misuse of technology and maintain uncompromised academic fairness, universities are moving decisively toward establishing transparent, adaptable guidelines regarding AI integration in coursework. Rather than implementing sweeping, prohibitive bans that often prove ineffective in a rapidly evolving digital landscape, forward-thinking academic institutions are encouraging professors to explicitly outline acceptable parameters for AI assistance within their individual course syllabi. These modern institutional frameworks typically distinguish between acceptable developmental uses—such as preliminary literature searches, syntax polishing, and formatting assistance—and prohibited actions, such as the unauthorized generation of core argumentative content or uncredited text substitution. By providing these precise boundaries, the university aims to guide students toward ethical compliance while equipping them with the robust digital literacy required in contemporary professional environments, where AI proficiency is increasingly expected. Fostering a Culture of Academic Integrity Ultimately, the integration of generative AI into campus life serves as a profound test of self-regulation, moral judgment, and academic ethics among university students. While technology will undoubtedly continue to advance and reshape the global educational landscape at a breathtaking pace, the foundational pillars of honesty, originality, and intellectual integrity remain steadfast. Navigating this complex digital era successfully requires a collective, ongoing commitment from both the student body and the faculty to uphold rigorous standards of evaluation and mutual trust. As the campus community continuously adapts to these innovative tools, fostering a deeply ingrained culture of mindful, transparent, and responsible AI usage will ensure that future graduates emerge as professionals who are both technologically sophisticated and ethically grounded. Sources: https://www.chosun.com/economy/weeklybiz/2026/08/30/54AVCWWJ35C63DOFTHQCIJJOXQ/ https://news.kbs.co.kr/news/view.do?ncd=8636634 https://www.newspim.com/news/view/20260828000816
참여: 0
EDITORIAL
In Our Own Way
Kicker: Editorial In Our Own Way By Sol-Mi Lim, Editor-in-chief imsolver4@gmail.com University life often seems to come with an invisible set of expectations. Some students spend their days studying, preparing for internships, earning certificates, and thinking seriously about their careers. Others want to travel, meet new people, enjoy their freedom, and make as many memories as possible. When these different lifestyles meet, it is easy to wonder which one is the “better” way to spend our university years. However, perhaps there is no correct answer at all. Someone may feel happiest while working toward a clear goal, while another person may find meaning in experiences that have nothing to do with a résumé. Studying hard does not guarantee success, just as spending more time enjoying the present does not mean someone is wasting their future. Our lives are far too unpredictable to decide their value only by how productive or ambitious we appear today. What matters more may be whether we are making choices that genuinely belong to us. There is little meaning in studying endlessly simply because everyone else is doing so. In the same way, forcing ourselves to enjoy every moment because university is supposedly “the best time of our lives” can become another kind of pressure. Especially during university, people seem to take very different paths. Some want to experience as much as possible, while others choose to prepare carefully for what comes next. Neither choice makes one person more successful, mature, or fulfilled than the other. We do not yet know who will look back on these years with the greatest satisfaction. Perhaps that is exactly why we should stop searching for one perfect way to live. There is no single answer to life, and our future is not decided by one period or one choice. For now, it may be enough to listen to ourselves and spend these years in the way that feels most meaningful to us.
SM NEWS
Sangmyung Introduces Credit Carryover
Kicker: SM NEWS More Flexibility, More Choices: Sangmyung Introduces Credit Carryover by Sumin Lee , Reporter minnida_@naver.com Have you heard of the “Credit Carryover System,” a policy that allows university students to carry unused credits from one semester over to the next? The system has already been adopted by several universities in Seoul, including both women’s universities and coeducational institutions, giving students greater flexibility in planning their courses. Sangmyung University has now joined this trend, introducing its own Credit Carryover System starting in the second semester of 2026. However, how many Sangmyung University students are actually aware of this newly introduced policy? As the system can directly affect course registration and academic planning, its introduction raises an important question: how well do students understand and make use of this new opportunity? How Does the Credit Carryover System Work? The Credit Carryover System is designed to give students more flexibility when planning their courses. Under the system, students who do not use all of the credits available to them in one semester may be allowed to carry a limited number of unused credits into the following semester. Rather than simply losing unused credits, students can use them later when they need additional academic space for major courses, electives, or other educational activities. However, the system does not mean that all unused credits can be transferred without limits. The amount of credits that can be carried over, the eligibility requirements, and the period in which the credits can be used depend on each university’s regulations. For Sangmyung University students, understanding the system is particularly important because the policy will begin with the second semester of 2026. Students should first check their regular maximum course load and determine how many credits they actually registered for in the previous semester. They can then identify whether they have any eligible remaining credits and whether those credits can be reflected in their next semester’s registration. In other words, the system should not be viewed as an opportunity to simply “take more classes,” but as a way to make better use of the credits already available within the university’s academic regulations. Consider a student who could register for 18 credits in the first semester but enrolled in only 17. If the university allows one unused credit to be carried over, the student could potentially register for 19 credits in the following semester. This could be particularly useful when the student needs one additional course to complete a general education requirement or wants to take a one-credit course that would otherwise be difficult to fit into the schedule. A second example involves a student who registered for 16 credits because several desired courses conflicted with one another. If two credits are eligible for carryover, those credits could provide additional flexibility in the next semester. Instead of having to choose between courses simply because of a strict credit limit, the student may be able to use the additional capacity for a major elective, interdisciplinary course, or other subject related to their career interests. In this case, the system can help students build a course schedule around their academic goals rather than forcing them to use exactly the same number of credits every semester. A third example shows why students should not assume that every unused credit will automatically be carried over. Suppose a student registers for 18 credits but later drops a three-credit course after the regular registration process. Depending on the university’s rules, credits that become available through course withdrawal may not qualify as carryover credits. Seoul Women’s University, for example, calculates carryover credits based on the remaining credits after the course-registration adjustment period and does not allow credits created by withdrawing from a course during the semester to be carried over. Therefore, students need to understand not only how many credits they have left, but also which credits are actually recognized under the system. Policy More Flexibility, but Also More Responsibility Image of the Notice of New System The introduction of the system could have several effects on Sangmyung University students. First, it may reduce the pressure created by rigid semester-based credit limits. Students sometimes leave credits unused because of timetable conflicts, limited course offerings, internships, extracurricular activities, or other academic plans. A carryover system can give these students another opportunity to use their available academic capacity in a later semester. Second, the system could encourage more strategic academic planning. Students may begin to think beyond a single semester and consider their course schedules across an entire academic year. For example, a student planning to take an internship, study abroad, or complete a demanding major project may intentionally create a lighter schedule in one semester and make greater use of the available credits in the next. In this sense, the system can support a more individualized approach to university education. At the same time, greater flexibility does not necessarily mean that students should register for as many courses as possible. Taking additional courses can increase academic workload and may affect students’ grades, extracurricular activities, or preparation for employment. The real benefit of the system therefore lies in giving students more choice, rather than encouraging them to accumulate more credits. Another important issue is fairness and accessibility. Students who are familiar with academic regulations may be able to take greater advantage of the system, while students who are unaware of the policy may simply lose the opportunity to use their available credits. This makes communication especially important during the first semester of its implementation at Sangmyung University. Clear explanations of eligibility, calculation methods, application procedures, and deadlines will be necessary if the system is to benefit a wide range of students. What Can Sangmyung University Learn from Other Universities? Sangmyung University is not the first university to introduce a credit carryover system. Several universities have already adopted similar policies, although their specific rules differ. Seoul Women’s University, for instance, allows students to carry over up to two unused credits from the first semester to the second semester when the remaining credits fall within the eligible range. The system is automatically reflected in second-semester course registration, and the carryover is limited to the same academic year. This example demonstrates that a credit carryover system can be more than a simple administrative policy. By automatically reflecting eligible credits during course registration, universities can reduce the procedural burden on students while making the system easier to use. At the same time, the restrictions show that clear rules are necessary to prevent confusion and ensure that the system operates consistently. The broader trend can also be seen in Seoul’s university environment. A 2026 university exchange notice from Catholic University lists numerous Seoul institutions implement a credit carry over system, including Sangmyung University, Seoul Women’s University, Sungshin Women’s University, Dongduk Women’s University, Konkuk University, Kookmin University, Dongguk University, Seoul National University of Science and Technology, Sejong University, Soongsil University, and Hongik University, among others. While the presence of a university on this list does not itself prove that it operates an identical Credit Carryover System, it illustrates the broad and diverse academic environment in which students increasingly encounter flexible approaches to course planning. Ultimately, the success of Sangmyung University’s new Credit Carryover System will depend not only on the existence of the policy but also on how effectively students understand and use it. A system intended to provide greater flexibility can only fulfill its purpose when students know what they are entitled to carry over, how those credits are calculated, and when they can use them. As Sangmyung University begins implementing the system in the second semester of 2026, the policy therefore represents not simply a change in course registration rules, but also an opportunity for students to take greater control over their academic planning. The introduction of the Credit Carryover System is part of Sangmyung University’s broader efforts to provide students with a more convenient and flexible university experience. Universities offer various academic support systems to help students manage their studies, and the new credit policy can be understood as another opportunity for students to make better use of these systems. Rather than being simply another change to course registration rules, the policy can give students greater control over when and how they use their available credit . However, a policy can only be effective when students know about it and understand how to use it. Students should therefore take the initiative to check the specific rules of the Credit Carryover System and consider how the policy can fit into their individual academic plans. Whether they need an additional course for graduation, want to balance their workload between semesters, or simply hope to make their course schedules more flexible, the system can become a useful tool when used appropriately. As Sangmyung University begins implementing the Credit Carryover System in the second semester of 2026, students should not regard it as merely a new registration rule, but as an opportunity to take greater ownership of their academic lives. The more students understand the opportunities available to them, the more effectively they can make those opportunities work for their own goals. SOURCES: https://edu.smu.ac.kr/kor/life/notice.do?mode=view&articleNo=766942 https://www.ewha.ac.kr/ewha/bachelor/course03.do https://ehaksa.hanyang.ac.kr/-27 https://www.swu.ac.kr/swu/929/subview.dohttps://www.kku.ac.kr/cms/FR_CON/index.do?MENU_ID=1320&CONTENTS_NO=1&P_TAB_NO=2 https://ee.kookmin.ac.kr/community/board/notice/17 https://web.dongguk.ac.kr/article/acdnotice/detail/512010 https://www.sungshin.ac.kr/bbs/main_kor/3181/157409/artclView.do https://www.dongduk.ac.kr/www/contents/kor-info02.do https://sabok.ssu.ac.kr/%EA%B2%8C%EC%8B%9C%ED%8C%90/m4sub1/?slug=11440 https://www.hongik.ac.kr/kr/newscenter/notice.do?mode=view&articleNo=154444 https://www.sejong.ac.kr/kor/intro/notice3.do?mode=view&articleNo=859167
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