[2020 National Audit] Since Moon Administration, People in Their 30s Received the Most Credit Loans... "Credit Management Discussion Needed"

Kim Sang-hoon, Member of the People Power Party

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyun-jung] According to a survey, the age group that received the most unsecured loans under the Moon Jae-in administration was people in their 30s. The amount has surged sharply over the past two years, with 13.2 trillion won borrowed just this year.

On the 19th, the Financial Supervisory Service submitted to Kim Sang-hoon, a member of the National Assembly's Land, Infrastructure and Transport Committee from the People Power Party, the "Status of New Unsecured Loans from the Five Major Commercial Banks over the Past Three Years." According to the data, among the new unsecured loans (141.9 trillion won) issued from 2017 to August this year, 33.3%, or 47.2 trillion won, were borrowed by people in their 30s. Those in their 20s also took out loans amounting to 14.2 trillion won (10.0%).

New loans for people in their 30s have surged over the past two years. The amount increased by 200 billion won from 10.7 trillion won in 2017 to 10.9 trillion won in 2018, then jumped 14.0% year-on-year to 12.4 trillion won last year. This year, as of August, it reached 13.2 trillion won, a 72.3% increase compared to the same period last year. In just eight months, it exceeded the total new loan amount of the previous year.

New loan amounts for those in their 40s also reached 12 trillion won as of August, up 66.5% year-on-year. Those in their 50s and 20s each saw increases of over 50%. Lawmaker Kim interpreted this as a result of "Yeongkkeul" (pulling together all resources?taking out loans by any means for home purchase) and "Debt Investment" (borrowing money to invest in stocks). He pointed out, "With job losses and business closures due to COVID-19, not only people in their 30s but all generations have reached a situation where they have no choice but to take on debt."

Based on outstanding balances as of the end of August, people in their 40s had the highest amount at 43.2 trillion won, followed by those in their 30s with 34.1 trillion won. Delinquent amounts were also highest among those in their 40s at 171.9 billion won, followed by those in their 50s with 141.8 billion won, and those in their 30s with 133.1 billion won.

Assemblyman Kim Sang-hoon emphasized, "Over the past three years of the Moon administration, increasing loan regulations, rising housing prices, and economic downturn caused by COVID-19 have led to a life sustained by debt," adding, "The longer the economic recession lasts, the heavier the burden of loans becomes." He continued, "Especially the difficulties faced by the younger generation with low income and assets are multiplied," urging, "The government must promptly discuss credit management measures."

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