My Field Trip to Seoul

June 03, 2013

For the past three years, I have been working on a Ph.D. in personal financial planning from Kansas State University. One of the final requirements prior to completing my doctoral studies and defending a dissertation is to examine global markets and to directly experience how other cultures approach the management of their money. So this week, I am writing you as I return from Seoul, South Korea after a ten day trip to learn about the country’s approach to personal financial planning.

As a child I always loved it when we left the classroom and embarked on a field trip.  As a “grown-up” (anyone that knows me can attest that I use that term loosely) I still love breaking out of the confines of a classroom through a field trip. However, let me start by admitting that prior to the trip, Seoul was not on my top ten list of places in the world that I wanted to visit. I began my visit with just a general understanding of the special relationship between the United States and South Korea, mainly from friends who completed military service over there and from recent headlines about the threats and political rhetoric from North Korea.

But after spending time with Dr. So-hyun Joo and her students at Ewha Womans University (the largest female educational institution in the world), multiple Korean financial institutions, and the Korea Financial Planning Association, I quickly found that Seoul was a vibrant mega-city with a population of over 10 million that embraces its cultural heritage while boasting a very technologically advanced infrastructure (it is no surprise so many global corporations are based in Korea).  The Korean cuisine was incredible and even though I cannot recall the name of every meat, fish, soup, or side dish (banchan) that we enjoyed, the family dining experience of having meals prepared at the table added a sense of fellowship and gratitude for the effort needed to prepare these fresh cooked meals.  As a baseball fan, it was amazing to see how the Koreans love the game and turn nine innings into a carnival type atmosphere with K-pop music (see Psy for an example), cheerleaders, and special songs for each player.  I am also embarrassed to admit that I enjoyed joining my classmates and new friends in private karaoke rooms (called “noraebang” in Korea).

Of course,this was a study abroad visit so the K-State Wildcats did more than just eat, drink and be merry. While there, my colleagues and I had the opportunity to present research to Ewha Womans University and Hanwha Life. I presented research findings to the Korea Financial Planning Association about Financial Finesse’s research on workplace financial wellness.

Along with my cohort,I also served as a panelist as we discussed some key similarities and differences in how financial planning is delivered in the United States and South Korea. There was a particular interest in the role of workplace financial education and fee-only financial planning, which are not concepts widely prevalent in Korea.  In fact, most financial planners in Korea work for either banks or life insurance companies and very few work independently.

Other experiences included sitting in on a briefing at U.S. Army Garrison Yongsan, which provided a unique look into the challenges faced by U.S. service members stationed abroad. The Department of Defense began one of the most widespread financial education programs that I am aware of back in May 2003 and we interacted with financial counselors whose task is to make sure that our nation’s service members enhance their financial readiness and money management skills. We also took a trip to the demilitarized zone (DMZ) and Panmunjom, the Joint Security Area where negotiations between North and South Korea were held. The visit provided a firsthand understanding of a nation divided and why this is one of the most heavily armed borders in the world.

When I think about the financial planners that I met during my visit to Korea, I realize that we speak different languages and have many different culture traditions but share a common bond of helping others create comprehensive financial plans. In the Republic of Korea (ROK), the unit of currency is called the won and Koreans face similar challenges related to making smart personal financial decisions when it comes to spending and saving it. The biggest challenge for the nearly 5,000 CERTIFIED FINANCIAL PLANNER™ professionals in the Republic of Korea and the Korea Financial Planning Standards Board is to create awareness among the general public as to the benefits of working with a financial planner.

This challenge is not unique to South Korea. Financial planning is a young profession first established in 1969 in the United States and the CERTIFIED FINANCIAL PLANNER™ designation was first awarded in 1973. Last year, the Certified Financial Planner Board of Standards launched the Let’s Make a Plan campaign to increase awareness of the importance of having a financial plan. This awareness campaign also helps highlights the important aspects of the financial planning process and how a CERTIFIED FINANCIAL PLANNER™ professional can provide necessary guidance by putting the interests of the client ahead of their own.

So if you’re considering choosing a financial planner, you should consider working with a CERTIFIED FINANCIAL PLANNER™ professional, whether you live in the US or the other side of the world.  And if you’re ever in Asia, consider spending some time in Seoul.  You may just want to steer clear of any Americans inviting you to join them for karaoke (unless you enjoy watching American Idol wannabes fail miserably to carry a tune).

To all of my professors, classmates, and new friends in South Korea – thanks for the memories. I hope to make it back to the “ROK” soon!

Resource:  http://letsmakeaplan.org/working-with-a-financial-planner