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Rapid Increase in Credit Limits Over the Past 3 Years
Consistent Rise in Delinquency Among People in Their 20s

Reference image / Photo by Mun Honam munonam@

[Asia Economy Reporter Kim Hyo-jin] Over the past three years, the credit limit amount for overdraft accounts among people in their 20s and 30s has sharply increased. In particular, the overdue amount on overdraft accounts for those in their 20s has steadily risen, indicating a need for management.

According to data on overdraft account openings from the five major commercial banks (KB Kookmin, Woori, Shinhan, Hana, NH Nonghyup) submitted to Kim Sang-hoon, a member of the National Assembly's Land, Infrastructure and Transport Committee from the People Power Party, the loan limit amounts for newly opened overdraft accounts by people in their 20s (ages 20-29) and 30s (ages 30-39) were 15.8659 trillion won in 2017, 15.9281 trillion won in 2018, and 16.4105 trillion won last year. This year, the amount reached 14.2011 trillion won as of July.

The number of newly opened overdraft accounts by people in their 20s and 30s was 346,768 in 2017, 330,877 in 2018, and 340,332 in 2019, with 214,146 accounts opened in just the first seven months of this year.

Since 2017, the total number of overdraft accounts opened by people in their 20s and 30s is 1,232,123, accounting for 36.5% of all overdraft accounts opened during this period (3,374,908 accounts).

The number of overdraft accounts opened by people in their 20s increased significantly from 66,936 in 2017 and 69,234 in 2018 to 82,538 last year. The overdue loan amount on overdraft accounts for those in their 20s was 1.27 billion won in 2017, 1.473 billion won in 2018, and 1.689 billion won in 2019, showing a steady increase unique to this age group. This year, it has already reached 1.3 billion won as of July.

Assemblyman Kim Sang-hoon pointed out, "Under the Moon Jae-in administration, due to loan regulations, rising housing prices, and employment difficulties, the younger generation has no choice but to engage in 'young-kkul' (borrowing to the limit) to buy their own homes and 'debt investment' for stock trading. The longer the economic downturn lasts, the greater the debt burden will be for the younger generation, who have relatively fewer assets and income."

This content was produced with the assistance of AI translation services.