Half of Users of High-Interest Savings Bank Overdrafts Are in Their 20s
[Asia Economy Reporter Kim Hyo-jin] Among customers with 'Savings Bank Overdraft Accounts (Ma-tong)' that have higher interest burdens than commercial banks, one in two is in their 20s.
According to data submitted by the Financial Supervisory Service to Jang Hye-young, a member of the Justice Party on the National Assembly's Planning and Finance Committee, as of the end of June this year, 14,245 people in their 20s were using savings bank overdraft accounts, accounting for 57% of the total (24,997 people).
The total amount used in overdraft accounts was 299.7 billion KRW, a 16.5% decrease from the end of last year, but the amount for those in their 20s (61.2 billion KRW) increased by 20%.
The number of new users was also highest among those in their 20s, increasing by 4,978 in the first half of this year alone. Considering that the number of new users in their 20s increased by 6,313 over the entire last year, this is a very steep growth rate.
The average loan amount per person in their 20s was analyzed to be 5.5 million KRW.
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Representative Jang emphasized, "Opening a savings bank overdraft account may be relatively easy, but the high interest rates pose a risk of default," adding, "A survey is needed to determine whether the widening asset gap and intensifying inequality are pushing young people to the limit."
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