Aid

March 8 (Asia Today) — South Korea plans to introduce a cap on student living expense loans after some university students began using the low-interest funds for stock and cryptocurrency investments.

The Korea Student Aid Foundation said the new loan cap system is expected to take effect next semester to reduce the risk of excessive borrowing among young people.

The agency currently offers living expense loans to undergraduate and graduate students at a fixed interest rate of 1.7%, significantly lower than typical commercial lending rates of about 3% to 4%.

Students who complete at least 12 credits in the previous semester and maintain an average grade of 70 or higher can apply. Borrowers may receive up to 2 million won ($1,490) per semester and are not required to provide documentation explaining how the funds are used.

Some students have used part of the loans as investment capital.

A 26-year-old student at Hankuk University of Foreign Studies said he invested part of his loan in semiconductor stocks.

“The interest rate is around 1% a year, so the burden is small,” he said. “If the investment return is higher than the interest, I felt there was no reason not to try.”

Another student at a four-year university in Jeju said he had previously invested loan funds in bitcoin during a price surge and made a profit. He said he continues to look for investment opportunities while stock markets remain strong.

Experts say the trend reflects both speculative investment behavior and financial pressures faced by young people.

Kim Dae-jong said the loans were originally intended to help students focus on their studies.

“Living expense loans are a public financial program designed to provide minimum support so students can concentrate on school,” Kim said. “Using them as investment funds is far removed from the program’s purpose.”

Loan delinquencies have also increased. According to the foundation, overdue balances rose from 19.2 billion won ($14.3 million) in 2021 to 38.7 billion won ($28.8 million) last year.

The number of delinquent borrowers nearly doubled during the same period, rising from 4,271 to 8,126.

Officials said most students still use the loans for living expenses and academic needs, but financial education programs are required before borrowers apply.

Students must complete an online financial education course that explains repayment obligations and the risks of excessive borrowing.

The foundation said the upcoming loan cap system aims to prevent excessive debt among students, since the loans must eventually be repaid after graduation.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260308010002045

Donald Trump announces pledges to a Gaza reconstruction fund during the first meeting of his Board of Peace.

Donald Trump has told the first meeting of his Board of Peace that nine member nations have pledged $7bn to a reconstruction fund for the Gaza Strip, with five countries agreeing to deploy troops to an international stabilisation force for the Palestinian territory.

Addressing the board in a meeting in Washington, DC, on Thursday, the United States president said the US will make a contribution of $10bn to the Board of Peace, although he didn’t specify what the money will be used for.

Kazakhstan, Azerbaijan, the United Arab Emirates, Morocco, Bahrain, Qatar, Saudi Arabia, Uzbekistan and Kuwait have raised an initial down payment for Gaza reconstruction, Trump said.

“Every dollar spent is an investment in stability and the hope of a new and harmonious [region],” said Trump. He added, “The Board of Peace is showing how a better future can be built right here in this room.”

The funds pledged, while significant, represent a fraction of the estimated $70bn needed to rebuild the Palestinian territory that has been decimated after more than two years of Israel’s genocidal war.

Proposed stabilisation force

Meanwhile, Indonesia, Morocco, Kazakhstan, Kosovo and Albania have pledged to send troops for the Gaza stabilisation force, part of Trump’s 20-point plan to end Israel’s war on Gaza. Egypt and Jordan have committed to training police officers.

Indonesian President Prabowo Subianto announced his country would contribute up to 8,000 troops to the proposed force “to make this peace work”.

The force, led by a US general with an Indonesian deputy, will start in the Israeli-controlled city of Rafah and train a new police force, eventually aiming to prepare 12,000 police and have 20,000 troops.

While the disarmament of Hamas was a part of Trump’s 20-point plan for Gaza, the group has been reluctant to hand over weaponry as Israel continues to carry out daily attacks on Gaza.

Hamas spokesperson Hazem Qassem said any international force must “monitor the ceasefire and prevent the [Israeli] occupation from continuing its aggression.” Disarmament could be discussed, he said, without directly committing to it.

Trump first proposed the board last September as part of his plan to end the war. But since the October “ceasefire”, Trump’s vision for the board has morphed, and he wants it to have an even more ambitious remit to tackle other conflicts worldwide.

The board has faced criticism for including Israeli representatives but not Palestinians.

Reporting from Gaza City, Al Jazeera’s Hani Mahmoud said that Palestinians want to see concrete solutions rather than pledges.

“Past experiences with conferences, with regard to reconstruction, with regard to the peace process, all ended up with large needs for funding that were delayed or [plans] that were not implemented,” he said.

“Palestinians don’t want to see this again; they don’t want to see the Board of Peace as another international body that falls into the category of crisis management rather than finding a tangible solution to this longstanding problem, the Palestinian problem,” Mahmoud noted.

More than 40 countries and the European Union confirmed they were sending officials to Thursday’s meeting. Germany, Italy, Norway, Switzerland and the United Kingdom are among more than a dozen countries that have not joined the board, but are taking part as observers.