South Korea debt adjustment recipients near 100,000 in first half of year

debt adjustment credit recovery high interest rates self-employed debt financial vulnerability

Nearly 100,000 people in South Korea underwent debt adjustment in the first half of this year due to high interest rates and inflation. According to data from the Credit Recovery Committee submitted to Rep. Park Seong-hoon, 97,199 individuals were confirmed for debt adjustment programs, including rapid debt adjustment, pre-debt adjustment, and individual workouts.

The number of debt adjustment recipients has risen steadily, increasing 56.1% over the past three years. Of those adjusted, 85,044 were individuals and 12,155 were self-employed, with the latter group holding a total debt of approximately 5.74 trillion won.

A significant trend is the sharp rise in debt adjustments among the elderly. For those aged 70 and older, rapid debt adjustment cases increased more than sevenfold compared to 2022. Additionally, long-term delinquency cases through individual workouts reached a five-year quarterly high in the second quarter.

Concerns are also rising regarding a cycle of re-borrowing. Even after undergoing debt adjustment, many vulnerable borrowers are applying for small-sum loans to cover living expenses. In the first half of the year, there were 26,703 applications for such loans, totaling 78.8 billion won.

Entities

Bank of Korea · Credit Recovery Committee · National Assembly · Park Seong-hoon

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] Self-employed individuals accounted for 12,155 debt adjustments with a total debt of 5.74 trillion won. www.jnilbo.com · www.tfmedia.co.kr
[● 4 SOURCES] Second quarter individual workout cases reached a five-year high of 30,054. www.jnilbo.com · www.tfmedia.co.kr
[● 4 SOURCES] Small-sum loan applications by diligent repayers reached 26,703 cases in the first half of the year. www.jnilbo.com · www.tfmedia.co.kr
[● 4 SOURCES] The number of debt adjustment recipients increased by 56.1% over the last three years. www.jnilbo.com · www.tfmedia.co.kr
[● 4 SOURCES] Debt adjustments for those aged 70 and older increased sevenfold compared to 2022. www.jnilbo.com · www.tfmedia.co.kr
[● 4 SOURCES] 97,199 people underwent debt adjustment in the first half of this year. www.jnilbo.com · www.tfmedia.co.kr