The average loan amount for wage workers in 2023 turned to an upward trend. Both bank loans and mortgage loans increased. The delinquency rate continued to rise for the second consecutive year. The delinquency rate among the elderly was higher than in other age groups.

Last November, office workers wearing thick coats were heading to work at the Yeouido Bus Transfer Center in Seoul.

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According to Statistics Korea's "2023 Job Administrative Statistics: Wage Worker Debt" released on the 27th, as of the end of December 2023, the average loan for wage workers was 51.5 million won, up 0.7% (350,000 won) from the previous year. During the same period, the delinquency rate based on the loan balance was 0.51%, an increase of 0.08 percentage points.

The average loan for wage workers had been steadily increasing over recent years, but appeared to decrease in 2022 (-1.7%). However, in 2023, it returned to an upward trend. The delinquency rate, which had been falling, began rising again in 2022 (by 0.02 percentage points) and has continued to increase for two years.

A Statistics Korea official explained, "The average loan amount in 2023 showed a stable trend, slightly up from the decrease in 2022," and added, "The notable point is that the composition of loans changed." The official continued, "Bank loans increased while non-bank loans decreased, and although mortgage loans increased, credit loans and others decreased, resulting in a stable overall trend."

Bank loans increased by 1.7% while non-bank loans decreased by 1.2%

Mortgage loans increased by 3.7% while credit loans decreased by 5.4%

In fact, breaking down the loan amounts by financial institution, compared to the previous year, bank loans (1.7%) increased, while non-bank loans (-1.2%) decreased. By loan type, mortgage loans (3.7%) and non-housing collateral loans (2.1%) increased, but credit loans (-5.4%) and other loans (-4.0%) decreased. The median loan for wage workers was 50 million won, unchanged from the previous year.

By age group, the average loan amounts were as follows: 40s (77.9 million won), 30s (69.79 million won), 50s (59.93 million won), 60s (37.45 million won), 70 and above (18.53 million won), and under 29 (16.01 million won). Compared to the previous year, loans increased among those in their 40s (2.0%) and those 70 and above (1.4%). Delinquency rates were as follows: 60s (0.86%) ▲50s (0.66%) ▲70 and above (0.65%) ▲under 29 (0.49%) ▲40s (0.46%) ▲30s (0.31%).

By housing type, apartment residents had the highest average loan (62.65 million won), followed by officetels/others (45.56 million won), multiplex/multi-family housing (39.77 million won), and detached houses (29.93 million won). Compared to the previous year, loans for apartment residents increased (0.3%), while loans for officetels/others (-2.3%) decreased. The delinquency rate was highest for detached houses (1.39%) and lowest for apartments (0.29%).

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The higher the income bracket, the larger the loan amount. Specifically: 100 million won or more (157.03 million won), 70?100 million won (107.69 million won), 50?70 million won (80.56 million won), 30?50 million won (47.32 million won), and less than 30 million won (24.82 million won). In contrast, the delinquency rates were ▲less than 30 million won (1.32%) ▲30?50 million won (0.45%) ▲50?70 million won (0.22%) ▲70?100 million won (0.14%) ▲100 million won or more (0.08%).

The larger the company size, the higher the average loan amount. It was highest among wage workers in large corporations (77.82 million KRW), followed by nonprofit organizations (49.35 million KRW), and small and medium-sized enterprises (42.99 million KRW).

The larger the company, the higher the average loan. Wage workers at large companies (77.82 million won), nonprofit organizations (49.35 million won), and small and medium-sized enterprises (42.99 million won) followed in that order. Compared to the previous year, loans for small and medium-sized enterprises increased (2.2%), while loans for nonprofit organizations (-1.7%) and large companies (-0.5%) decreased. Delinquency rates were 0.82% for small and medium-sized enterprises, 0.29% for large companies, and 0.23% for nonprofit organizations.

By industry, the highest average loans were among wage workers in finance and insurance (100.27 million won), information and communications (73.42 million won), professional/scientific/technical services (69.76 million won), manufacturing (63.95 million won), and public administration (63.34 million won). Compared to the previous year, loan amounts increased in business support and rental services (4.3%), but decreased in education (-1.5%). Delinquency rates were high in construction (1.28%), accommodation and food service (1.12%), transportation and warehousing (0.98%), and real estate (0.91%).