What is really driving young Koreans into debt?
Lee, a graduate student, took out a Sunshine Loan to cover tuition and living expenses. While juggling her studies and work in a laboratory, she was forced to quit her job because of health problems. She had been making ends meet by working as a restaurant server, but when she fell short of money for living expenses, she eventually turned to a credit card loan. Her outstanding debt stands at 17…
Many young Koreans are falling into debt, driven by various factors, according to recent data. Graduate student Lee, for example, took out a Sunshine Loan to finance her tuition and living costs. However, health issues forced her to abandon her job as a restaurant server, leaving her with mounting debt.
Lee's total debt amounts to 17 million won ($12,500), with credit card loans making up the largest portion at 4 million won. These credit card loans carry annual interest rates exceeding 15 percent. Despite earning 2.5 million won monthly, Lee dedicates 1 million won solely to interest payments. She has explored refinancing options to alleviate her credit card debt, yet found no loans suitable for her current credit standing.
Financial authorities reported that a staggering 1,637,532 individuals have loans from three or more financial institutions. Among these, 342,690 individuals fall within the 20s and 30s age bracket, constituting 20.9 percent of the total. There have been speculations that the anxiety surrounding an overheated asset market has contributed to the debt burden among young Koreans.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- What is really driving young Koreans into debt? koreatimes.co.kr
