[2020 National Audit] 2030 Borrowed 60 Trillion Won Under Moon Administration Due to 'Debt Investing' and 'All-In' Strategies

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] The age group that took out the most new credit loans under the Moon administration was people in their 30s.

Kim Sang-hoon, a member of the National Assembly from the People Power Party and part of the Land, Infrastructure and Transport Committee, cited the 'New Credit Loan Status of the Five Major Commercial Banks over the Past Three Years' submitted by the Financial Supervisory Service on the 19th. He revealed that out of 141.9 trillion won in new credit loans from 2017 to August 2020, 47.2 trillion won (33.3%) was borrowed by those in their 30s, and those in their 20s also took out 14.2 trillion won (10.0%).

This means that the 20s and 30s combined borrowed 61 trillion won, accounting for 43% of the total loans.

New loans for people in their 30s surged sharply in the past two years. It increased by 200 billion won from 10.7 trillion won in 2017 to 10.9 trillion won in 2018, but last year it rose 14% year-on-year to 12.4 trillion won, and in 2020, it jumped 72.3% year-on-year to 13.2 trillion won in just eight months. New loans for those in their 40s also recorded 12 trillion won as of August this year, a 66.5% increase compared to the same period last year, and those in their 50s and 20s also saw a 50% increase.

Rep. Kim said, "With the all-in efforts to buy a home and borrowing to invest in stocks, combined 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 go into debt," adding, "The government must urgently discuss credit management measures."

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