[2025 Audit] "Enduring Old Age on Debt" Loans to Vulnerable Self-Employed in Their 70s Hit Record 37 Trillion Won

Outstanding Loans for Vulnerable Self-Employed Aged 70 and Above Up 3.7 Times Since 2015
Shift in Loan Structure: From 40s and 50s to 70s as the Largest Borrowers

The outstanding loan balance for self-employed borrowers aged 70 and above, classified as vulnerable, has reached an all-time high. Elderly self-employed individuals, who must continue their businesses to make a living but lack sufficient retirement funds, are facing a double burden. This has led to calls for the government to implement tailored debt relief programs and establish integrated financial and welfare support systems.

A vacant store is available in a commercial area densely packed with shops in Sinchon, Seoul.

According to data submitted by Democratic Party lawmaker Jung Ilyoung, a member of the National Assembly’s Strategy and Finance Committee, to the Bank of Korea, the outstanding loan balance for vulnerable self-employed borrowers aged 70 and above stood at 37.4 trillion won as of the second quarter of this year, marking a record high. This figure has increased 3.7 times over the past decade, rising from 10 trillion won in 2015.

Bank of Korea household debt statistics show that in 2015, those in their 40s (12.1 trillion won), 50s (10.8 trillion won), and those aged 70 and above (10 trillion won) had the largest loan balances, in that order. However, by the second quarter of 2025, borrowers aged 70 and above had surpassed all other age groups, with a balance of 37.4 trillion won. Those in their 50s and 40s followed with 34.6 trillion won and 27.7 trillion won, respectively. During the same period, the proportion of loans held by those aged 70 and above also rose by 4.3 percentage points, from 24.4% to 28.7%.

The number of self-employed individuals aged 60 and above also increased from 1.42 million in 2015 to 2.1 million last year, accounting for 37.1% of all self-employed people. This means that more than one in three self-employed individuals continues to operate their businesses after retirement to sustain their livelihoods.

Vulnerable self-employed borrowers are defined as those who have multiple debts from various financial institutions and are either in the bottom 30% income bracket or have a credit score of 664 or lower. A significant number of these individuals rely on high-interest loans from secondary financial institutions, which has led to a rise in delinquency rates and increased the burden of principal and interest repayments, thereby intensifying financial risks.

Assemblyman Jung pointed out, "Elderly self-employed individuals must continue their businesses to make a living, but at the same time, they face a double burden due to insufficient retirement funds." He added, "The rapid increase in debt among self-employed individuals aged 70 and above is not just a personal issue, but a complex crisis affecting the entire structure of retirement, employment, and finance. The government should swiftly implement tailored debt adjustment and interest reduction programs, as well as establish an integrated financial and welfare support system."