[2020 National Audit] 20s Credit Loan Delinquency Rate of KakaoBank and K Bank Four Times Higher Than Commercial Banks

The delinquency rate for credit loans among people in their 20s who borrowed money from internet banks KakaoBank and K Bank has reached 3.5%. There are calls to actively manage this issue by examining the background and causes of the high delinquency rate.

According to data analyzed by Jang Hye-young, a member of the National Assembly's Planning and Finance Committee from the Justice Party, as of the end of August, the delinquency rate for credit loans among people in their 20s at internet banks was recorded at 3.47%.

KakaoBank and K Bank issued new credit loans totaling 8.435 trillion KRW from the beginning of this year through August. Of this amount, new loans to people in their 20s accounted for about 3.5%, or 298.2 billion KRW. Looking at outstanding balances, out of a total of 14.8597 trillion KRW, the outstanding credit loan balance for people in their 20s was 370.3 billion KRW, about 2.5%. However, in terms of delinquent amounts, out of the total credit loan delinquency amount of 69.3 billion KRW, the delinquent amount for people in their 20s was 12.9 billion KRW, accounting for 18.6%.

This stands out even more when compared to the delinquency status of people in their 20s at commercial banks. For commercial banks, the delinquency rate for credit loans among people in their 20s was 0.83%, and the delinquent amount was about 8.47% of the total delinquent amount.

Assembly member Jang pointed out, "We need to examine whether people in their 20s, who are relatively economically disadvantaged, are turning to internet banks more easily and frequently, or whether the management of loan receivables at internet banks is inadequate."