Published : 2013-02-22 20:43
Updated : 2013-02-22 20:43
Debt rescheduling requests filed by South Koreans in their 20s surged last year largely due to heavy financial burdens from repaying loans for school fees and living expenses amid low employment, data showed Friday.
The number of applicants aged 29 or below for a personal debt rescheduling program stood at 6,809 last year, up 4.2 percent from 6,535 the previous year, according to the data by the Credit Counseling and Recovering Service.
In South Korea, a borrower who is three months or more behind with debt repayment is eligible for personal debt rescheduling.
The on-year rise seen among those in their 20s compares with falls in other age groups. The number of applicants in their 30s dropped 10.2 percent on-year last year, with that of those aged between 40-49 slipping 8.1 percent on-year, the data showed.
The number of people in their 20s who applied for a pre-workout program, available to borrowers with a delinquent period of less than three months, also rose 7.4 percent to 2,180 over the cited period.
A tough job market for younger workers amid the sluggish economy has made it difficult for them to repay money borrowed for tuition or living expenses.
South Korea saw the number of newly employed in their 20s slide by more than 100,000 last month, the biggest decline in two years, according to latest government data.
The incoming government, led by President-elect Park Geun-hye, has promised to bolster financial support for the younger generation by setting up a public fund to buy bad debts and help them readjust their liabilities. (Yonhap News)