South Korea student loan delinquencies exceed 60,000 people

The number of young people in South Korea failing to repay income-contingent student loans has exceeded 60,000 as of July this year. According to data from the National Tax Service provided by lawmaker Moon Jin-seok, the total amount of delinquent loans has reached approximately 87.35 billion won, with an average delinquency of 1.44 million won per person.

This trend shows a steady increase from 2020, when there were 36,236 delinquent borrowers. The total cumulative delinquency has also risen annually, growing from 42.65 billion won in 2020 to over 81.3 billion won in 2025. While the growth rate of the delinquency amount slowed slightly to 9.8% this year, the total amount has already increased by 7.4% compared to the entirety of last year as of July.

Economic instability, including job loss, business closures, and parental leave, has been cited as a primary cause for repayment delays. Approximately 9,355 individuals have received repayment deferrals due to such hardships. Lawmaker Moon Jin-seok emphasized the need to revise repayment deferral and reduction standards and to implement support measures for employment and income to address the rising number of struggling youth.