The outstanding balance of stock-backed loans is concentrated in the elderly, with 63% of the total, and it is also expected that the loss due to the stock market adjustment will be concentrated in this group. According to the Korea Financial Telecommunications and Clearings Institute on the 22nd, the outstanding balance of stock-backed loans at the end of last month was 16.2 trillion won, with 10.2 trillion won, or 63%, being borrowed by those in their 60s and older. By age group, those in their 50s had 3.4 trillion won, and those in their 40s had 1.3 trillion won. Those in their 30s or younger had 300 billion won. The stock-backed loan is a loan service in which stock as collateral is used to lend money. The number of stock-backed loan users has rapidly increased since the Corona 19 outbreak. The balance of stock-backed loans has also increased rapidly, from 2.6 trillion won at the end of 2019 to 7.7 trillion won at the end of 2020, and then to 16.2 trillion won at the end of last month. The rapid increase in stock-backed loans is due to the increase in stock prices and the increase in collateral value, but experts say that if stock prices fall, the stock-backed loan may not be able to repay the loan if the stock price falls. In particular, the stock-backed loan users are concentrated in the elderly, and there is a high possibility that the stock market adjustment will cause a loss to this group. Experts say that investors should be cautious when taking stock-backed loans, saying that stock prices can fluctuate rapidly. Kim Yu-kyung, a researcher at the Korea Institute of Finance, said, "The stock-backed loan users should be aware that stock prices can fluctuate rapidly and that they can lose their investment principal." Noh Young-chan, a researcher at the Capital Market Research Institute, said, "The stock-backed loan is a service that can be used in an emergency, but it can also be a factor in increasing investment risk."
We haven't written up this one. Hankyoreh has the full story — the link below goes straight to it.
