Revolving Carryover Balance of 5.5 Trillion Won... Main Users Are Ages 30-40

3040 Revolving Usage Scale Total Balance 64.5%
Increase Also Seen in Teens and 20s

[Asia Economy Reporter Ki Ha-young] Among customers using credit card revolving payment (partial payment amount rollover agreement), 6 out of 10 are in their 30s and 40s. However, the generation that has increased revolving payment usage the most over the past three years is those in their 20s.

According to data on revolving payment rollover balances and delinquency status submitted by the Financial Supervisory Service to Jeon Jae-su, a member of the National Assembly's Political Affairs Committee from the Democratic Party of Korea, the revolving payment rollover balance of card companies in the first half of this year was 5.515 trillion KRW, a 13% (636 billion KRW) increase compared to 2017.

By age group, the 30s and 40s generation, aged 30 to under 50, had the highest revolving payment rollover balance at 3.5571 trillion KRW. This accounts for about 64.5% of the total rollover balance (5.515 trillion KRW). Those in their 50s followed with 1.1081 trillion KRW, while those in their 20s and 60s recorded 426.8 billion KRW and 353.4 billion KRW, respectively.

Excluding teenagers who practically do not have credit cards, the 20s generation showed the steepest increase in rollover balance over the past three years, rising by 52% compared to the end of 2017.

By credit rating, for payment-type revolving payments, grade 5 had the largest loan balance at 1.1004 trillion KRW, followed by grade 4 with 948.2 billion KRW and grade 6 with 903.2 billion KRW. For loan-type revolving payments, grade 6 had the highest rollover balance at 97.5 billion KRW, followed by grade 7 at 88.7 billion KRW and grade 5 at 53.2 billion KRW.

Payment-type revolving payments are high-interest products with an average rate of 18%, and loan-type revolving payments have an average rate of 21%. As usage of revolving payments increases among middle-credit borrowers as well as teenagers and those in their 20s, it poses a significant burden on vulnerable groups, while card companies’ profits are increasing, which is why concerns are being raised.

Assemblyman Jeon said, "While revolving payment services may seem to ease debt burdens by postponing payments that must be made immediately, interest is added to the card payments later, which actually increases the debt burden." He added, "Ultimately, vulnerable groups relying on revolving payments face a high risk of falling into delinquency."

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