3 out of 10 Young Adults Are 'Multiple Debtors'... Average Debt of 100 Million Won Per Person

Rapid Increase in Young Multi-Debtors Over 4 Years
Risk of Becoming Delinquent Debtors During Interest Rate Hikes

Among 10 multiple debtors who borrowed money from three or more financial companies, three are young people aged 30 or younger, highlighting the need for countermeasures.

According to the status data on multiple debtors provided by the Bank of Korea to Jin Sun-mi, a member of the National Assembly's Planning and Finance Committee (Democratic Party), as of the third quarter of last year, the total number of multiple debtors was 4.473 million, with a loan balance of 589.7 trillion won.

Among them, 1.39 million were young people aged 30 or younger, accounting for 31% of the total multiple debtors (4.473 million). The loan balance of young multiple debtors was 155.1 trillion won, with an average of about 111.58 million won per person.

In the third quarter of 2018, the number of young multiple debtors was 1.327 million, and the total loan balance was 120.7 trillion won. Over four years, the number of multiple debtors increased by 4.7% (63,000 people), and the loan balance surged by 28.5% (34.4 trillion won). The average balance per person also sharply increased by more than 20 million won, from about 90.96 million won.

When dividing the total multiple debtors by age group, the increase among the elderly aged 60 and over stands out.

As of the third quarter of last year, the number of multiple debtors aged 60 or older was 570,000, with a loan balance of 73.4 trillion won. Compared to the third quarter of 2018, the number of debtors increased by 43.6% (397,000 people), and the loan balance rose by 27.9% (57.4 trillion won).

Looking at the average loan balance per person, those in their 40s borrowed the most, with 145 million won. Those in their 50s recorded 142.19 million won, followed by those aged 60 and over with 128.89 million won.

Multiple debtors are classified as vulnerable debtors with a high possibility of ‘rolling over’ debt?borrowing to repay other debts?making them highly susceptible to defaults during periods of interest rate hikes.

Representative Jin emphasized, “With the rapid increase in multiple debtors and the sharp rise in the base interest rate, there is a risk of deterioration in asset soundness,” adding, “Proactive risk management is necessary, including financial support programs for vulnerable debtors and expansion of policy finance.”

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