Due to the 'Virtual Assets and Stocks' Craze... Personal Rehabilitation Applications by People in Their 20s Surge 1.5 Times in One Year

by Son Seonhee

Published 05 Apr.2024 15:34(KST)

The number of people in their 20s filing for personal rehabilitation has surged by 1.5 times over the past year. The proportion of individuals in their 20s among all personal rehabilitation cases has also been on the rise for five consecutive quarters. This is attributed to the recent active investments by people in their 20s in virtual assets, stocks, and other areas.

On the 5th, the Seoul Rehabilitation Court released the "2023 Personal Rehabilitation and Bankruptcy Case Statistical Survey Report" containing these findings. According to the report, the number of cases where personal rehabilitation procedures were initiated at the Seoul Rehabilitation Court last year was 19,379, a 30.7% increase compared to the previous year (14,826 cases).

Seoul Rehabilitation Court, Seocho-gu, Seoul (Photo by Yonhap News)

Analyzing personal rehabilitation applicants by age group, those in their 30s accounted for the largest share at 30.4%, followed by those in their 40s at 28.5%, 50s at 18%, 20s at 16.9%, and those aged 60 and above at 6.2%.

In particular, the number of rehabilitation applications from people in their 20s reached 3,278 last year, approximately 1.5 times (45.3%) higher than the previous year’s 2,255 cases. The proportion of people in their 20s among all rehabilitation applications steadily increased from 10.3% (first half of 2021) → 11% (second half of 2021) → 13.8% (first half of 2022) → 16.6% (second half of 2022) → 16.8% (first half of 2023) → 17% (second half of 2023). This trend is interpreted as a result of the recent expansion of economic activities among people in their 20s, including virtual assets and stocks.

Regarding bankruptcy cases, the age group with the highest proportion of applicants was those aged 60 and above at 47.52%, followed by those in their 50s at 29.44%, 40s at 15.23%, 30s at 5.69%, and 20s at 2.11%. Approximately 75% of bankruptcy applicants reported a monthly income of 1 million KRW or less.