Under 30s Increase by 17,000 in Half a Year
Reaching a Total of 231,200
Personal Rehabilitation Applications Also Surge
The number of young people under the age of 30 registered as financial debt defaulters, formerly known as 'credit delinquents,' has increased by 17,000 in just six months. If loan interest is overdue by more than 90 days, the individual is registered as a financial debt defaulter. Financial transactions are then suspended.
According to data submitted on the 29th by the Korea Credit Information Services to Jin Sun-mi, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, as of the end of June, there were approximately 231,200 financial debt defaulters under the age of 30. Compared to the end of last year, this is an increase of about 17,000. The proportion of those under 30 among all financial debt defaulters also rose from 29.27% to 29.75%.
The 'registered amount,' which refers to the remaining principal of loans for financial debt defaulters, is also on the rise. The average registered amount for financial debt defaulters under 29 increased from 21.5 million won at the end of last year to 23.7 million won at the end of June. For those in their 30s, it rose from 34.6 million won to 39 million won during the same period.
Many also end up filing for personal rehabilitation due to an inability to manage their debts. According to data on 'personal rehabilitation applicants over the past three years' submitted to Assemblywoman Jin by the Supreme Court, the number of personal rehabilitation applications from people in their 20s and 30s in the first half of this year was 25,244. This already exceeds half of last year's total applicants (40,494). Assemblywoman Jin emphasized, "The debt burden on young people could expand into a broader financial instability," and stressed, "It is urgent for financial authorities to prepare management and relief measures."
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