Over 6 million South Koreans face loan arrears, with $35 billion overdue. High interest rates and prices worsen economic strain.
In South Korea, the economy of ordinary people is getting tougher due to persistent high prices and high interest rates and a delayed recovery of the real economy,
and the number of individual borrowers who are in arrears on bank loans, card loans, etc. has exceeded 6 million, and the outstanding balance of past dues is approaching 50 trillion won. According to documents submitted by the Financial Supervisory Service and the Credit Information Service to Rep. Kim Hyun-jung (Democratic Party) on the 15th, the number of delinquent individual borrowers (including individual business owners) registered in the Credit Information Service’s creditor change information system as of the end of October was calculated to be 6.144 million. The number of delinquent cases is 21.46 million, and the total outstanding delinquent amount is 49.4441 trillion won (about 5.3 trillion yen). If an individual or individual business owner falls behind on a bank loan, card loan, cash service, or credit card transaction, it will be registered here within five business days. Looking at card loans, which are used as “quick money for ordinary people,” the balance of nine card companies was 42.22 trillion won, up 533.2 billion won from the previous month and setting a new record high following August. The creditor change information inquiry system is a function that allows individual financial consumers to inquire about the current status and details of changes in their overdue debts. As the financially vulnerable class loses the ability to repay their debts, the damage caused by illegal private finance (informal lenders) outside of public finance is also increasing day by day. According to the People’s Finance Promotion Agency, the People’s Finance Integrated Support Center received 42,409 inquiries about illegal private finance between January and October this year, already more than four times the number of inquiries received in the entire year last year (10,130). The small living expenses loans, which were introduced to block the access to illegal private financing and open up access to funds for the financially vulnerable who were unable to secure emergency funds, have a delinquency rate of nearly 30%. According to data provided to Kim by the People’s Finance Agency, the delinquency rate for small living expenses loans reached 29.7% in October. It rose from 11.7% at the end of last year to the 20% range in May, before rapidly approaching 30%. Small living expenses loans are a financial product introduced by the financial authorities in March last year using funds created by banking authorities, and are a system that allows same-day loans of up to 1 million won to those with low credit and low incomes who are in the bottom 20% of credit ratings and earn an annual income of 35 million won or less, even without proof of income. By age, the delinquency rates were highest among those in their 20s (36.2%), 30s (32.4%), and 40s (29.6%). With the employment market also sluggish due to the economic slowdown, some analysts are saying that people are reaching the limits of their ability to repay their debts, to the point where they are unable to pay even a few thousand won in interest each month. With delinquency rates soaring, the demand for livelihood funds among ordinary people continues to grow. An examination of household loan trends in November showed a clear upward trend in household loans from the second financial sector, which are primarily used by the general public and vulnerable classes to secure emergency funds. The credit-specialized financial sector (card capital) increased by 600 billion won from the previous month due to an increase in card loans, and the insurance sector also increased by 600 billion won, mainly due to insurance contract loans. The savings bank industry saw an increase of 400 billion won, mainly due to credit loans. Cho Kye-wan, senior reporter (Contact [email protected])
12/16 (Mon) 8:14
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[Hankyoreh] South Korea’s national debt is 130 trillion yen…exceeding 50% of gross domestic product (GDP) for the first time [12/13] [Masked Unida★].
The person who issues the super amnesty decree will probably become president (lol).
Unemployment and suicide rates are increasing, so it’s not a problem.
I have high hopes for Myung Myung!
You think Ishiba can do something about it?
He’s not a “pro-Korean dictator” or anything, right?
their GDP per capita is higher,
and K-POP and Korean pop culture are popular, so it’ll be fine!
Japan is withdrawing from the refinancing loan market.
Is this like Old Maid?
What should I do?
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