South Korean youth debt shows high multi-debtor and low-credit rates

A recent analysis of financial data reveals significant debt vulnerabilities among young people in South Korea. According to research by the Korea Institute for Health and Social Affairs using data from the Korea Data Agency, approximately 58.9% of youth with loans are multi-debtors holding two or more separate debts. Notably, 13.6% of these individuals hold seven or more loans, a rate higher than that of individuals in their 40s, 50s, or 60s.

The debt profile is characterized by low credit scores and specific loan types. Among borrowers in their 20s, 60.7% are classified as low-credit individuals with scores below 829. While many loans are for relatively small amounts—with 21.7% being under 5 million won—the structural issue lies in the high proportion of credit loans (41.9%) and student loans (29.3%).

Long-term delinquency is also on the rise, with the percentage of youth overdue by 90 days or more increasing to 2.3% as of June 2025. Experts suggest that current debt adjustment policies lack flexibility for the unstable employment conditions typical of this age group, calling for a shift toward preventative measures and integrated support systems to aid financial recovery.