The number of young South Koreans facing delinquent loans has surged dramatically over the past three years, according to recent data from the Financial Supervisory Service. As of July, there are 65,887 individuals in their 20s classified as delinquent borrowers, a significant 25.3 percent increase from 2021's figure of 52,580. This trend is alarming, especially when compared to the overall increase in delinquent borrowers across all age groups, which rose by only 8 percent during the same period. The data reveals that many young borrowers are struggling with unpaid bank loans and credit card debts, with a notable portion also facing challenges from nonbank financial institutions. Analysts attribute this rise to a sluggish job market, exacerbated by South Korea's ongoing economic difficulties. With hundreds of thousands of young people not actively seeking employment, the financial strain is likely to continue, raising concerns about the long-term implications for the country's youth and economy.
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