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S. Korean wage workers' debt grows 7 pct in 2021

SEOUL
2023-03-28 14:45

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SEOUL, March 28 (Xinhua) -- South Korean wage workers' debt grew in single digits in 2021 on solid debt demand from the younger generation, statistical office data showed Tuesday.

The per-capita debt owed by wage and salary workers to banks and non-banking institutions averaged 52.02 million won (40,100 U.S. dollars) at the end of December 2021, up 7.0 percent from a year earlier, according to Statistics Korea.

It surpassed 50 million won (38,500 dollars) for the first time since relevant data began to be compiled in 2017, but the growth rate was lower than an increase of 10.3 percent in the previous year.

The country's central bank began to tighten its monetary policy stance in August 2021 to control massive household debts, while the government strengthened lending regulations to curb the purchase of homes with borrowed money.

The per-capita debt held by those in their 20s or younger jumped 15.4 percent to 16.91 million won (13,000 dollars) in the cited period, marking the fastest expansion in the age group.

The average loan extended to paid workers in their 30s advanced 10.7 percent to 71.68 million won (55,300 dollars), while loans to those in their 40s, 50s and 60s rose in single digits to 76.38 million won (58,900 dollars), 60.57 million won (46,700 dollars) and 38 million won (29,300 dollars) respectively.

The loan delinquency ratio for salaried workers came in at 0.41 percent at the end of December 2021, down 0.09 percentage points from a year ago.
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