Delinquency rate up to 4%… “Risk Management”
The delinquency rate of customers in their 20s who received credit loans from internet banks has soared, reaching up to 4%. It has been pointed out that an environment in which young people in their 20s, who are just starting out in society, can easily borrow money from internet banks and fall into loan delinquency, needs to be created to manage their credit.
According to household credit loan data submitted by the Financial Supervisory Service by Rep. Kim Hyun-jung of the Democratic Party of Korea, a member of the National Assembly’s Political Affairs Committee, on the 20th, the delinquency rate of borrowers in their 20s or younger who received credit loans from K Bank as of the end of August was 4.05%. It soared by 2.29% points and 0.28% points, respectively, compared to the end of 2021 (1.76%) and the end of last year (3.77%). The overall delinquency rate (1.92%) is also significantly higher.
This trend can also be seen in other internet banks. As of the end of August, Kakao Bank’s credit loan delinquency rate for people in their 20s and younger was 2.09%, the highest among age groups. The delinquency rate, which was 0.45% at the end of 2021, rose to 1.41% at the end of 2022 and 1.73% at the end of last year, and has been maintained in the 2% range since the end of July (2.00%) this year. Toss Bank’s credit loan delinquency rate for people in their 20s and younger also increased from 1.48% at the end of 2022 to 1.75% at the end of August this year.
As credit loans can be easily obtained non-face-to-face through internet banks, the delinquency rate among borrowers in their 20s appears to be increasing. In particular, some analyzes say that the reason K Bank’s credit loan delinquency rate for people in their 20s is higher than that of other banks is because the proportion of customers holding accounts linked to the virtual asset exchange Upbit is high.
Rep. Kim pointed out, “Management is needed to prevent young people from taking out excessive loans, and financial authorities must prepare measures such as financial education and counseling services.”
Reporter Kim Soo-yeon [email protected]
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