Among 10 Multiple Debtors, 3 Are Youth... "Financial Support Should Be Expanded"

3rd Quarter Last Year: 1.39 Million People Under 30
Average Loan Balance Per Person 111.58 Million KRW

In the third quarter of last year, it was found that 3 out of 10 multiple debtors were young people aged 30 or younger. There are calls to expand financial support programs and policy finance targeting this group to prevent deterioration in asset soundness.

According to the "Status of Multiple Debtors" data submitted by the Bank of Korea to Jin Sun-mi, a member of the Democratic Party of Korea, the number of multiple debtors aged 30 or younger in the third quarter of last year was 1.39 million, accounting for 31% of the total multiple debtors (4.47 million). The loan balance they borrowed amounted to 155.1 trillion KRW, which translates to an average loan balance of 111.58 million KRW per person.

Multiple debtors refer to those who have borrowed money from three or more financial institutions. Since the repayment burden is relatively greater during periods of rising interest rates, they are considered a "weak link" in asset soundness deterioration.

During the same period, the age group with the highest amount borrowed among multiple debtors was those in their 40s. A total of 1.347 million people borrowed 195.3 trillion KRW, with an average loan balance of 145 million KRW per person. Following them were those in their 50s with 165.8 trillion KRW (1.166 million people) and those in their 60s with 73.4 trillion KRW (570,000 people).

The number of multiple debtors has increased significantly over the past four years. In the third quarter of last year, the total loan balance and number of multiple debtors were 589.7 trillion KRW and 4.473 million people, respectively, representing increases of 18.5% and 7.2% compared to the third quarter of 2018 (497.6 trillion KRW and 4.172 million people). Notably, the loan balance of the elderly aged 60 and over increased the fastest, rising from 57 trillion KRW in the third quarter of 2018 to 73 trillion KRW in the third quarter of last year, a 27.9% increase.

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