Business · Economy · 2 hrs ago
Delinquency among South Korea’s older borrowers more than doubled in four years
Older borrowers in South Korea are falling behind on loans more often, with the delinquency rate for people aged 60 and over reaching 1.5% in the second quarter.
The Bank of Korea defines vulnerable borrowers as people with low incomes or poor credit who have loans from at least three financial institutions.
People aged 60 and over made up 19.9% of vulnerable borrowers, up from 15% at the end of 2021.
Their average loan balance was 97.87 million won per person, the highest among the age groups compared.
Their delinquency rate more than doubled from 0.7% in 2021, while the rate for borrowers aged 30 and under rose from 0.4% to 0.6%.
Rising interest rates may add to the strain because older borrowers often have a weaker income base, and older self-employed people held 405.7 trillion won in financial debt at the end of the first quarter.
The Bank of Korea governor said fiscal support was important alongside monetary policy, but no specific next steps were given.
South Korea’s household-loan delinquency rate for borrowers aged 60 and older rose from 0.7% in 2021 to 1.5% in the second quarter of 2026.
Borrowers aged 60 and older made up 19.9% of vulnerable borrowers in the second quarter, up from 15% at the end of 2021.
Their average loan balance among vulnerable borrowers was 97.87 million won, the highest of any age group.
The Bank of Korea data point to concern that older borrowers with low incomes may be especially exposed to rising interest costs.
Older self-employed borrowers aged 60 and above held 405.7 trillion won in financial debt at the end of the first quarter.
- Who
- South Korean borrowers aged 60 and older, particularly vulnerable borrowers.
- What
- Their household-loan delinquency rate more than doubled, reaching 1.5% in the second quarter of 2026.
- When
- The comparison is between 2021 and the second quarter of 2026.
- Where
- South Korea.
- Why
- The article points to weak income bases and greater interest burdens as rates rise.
This story does not have two clearly opposing sides.
The household-loan delinquency rate for borrowers aged 60 and older was 0.7%.
Borrowers aged 60 and older accounted for 15% of vulnerable borrowers.
Financial debt held by self-employed people aged 60 and older reached 405.7 trillion won.
The delinquency rate for borrowers aged 60 and older was 1.5%, and their share of vulnerable borrowers was 19.9%.
Bank of Korea Governor Shin Hyun-song said vulnerable borrowers face particular difficulty when interest rates rise.
- Older borrowers' delinquency rate
- 1.5% in the second quarter of 2026, compared with 0.7% in 2021
- Share of vulnerable borrowers aged 60 and older
- 19.9% in the second quarter of 2026
- Average loan balance
- 97.87 million won per vulnerable borrower aged 60 and older
- Older self-employed borrowers' financial debt
- 405.7 trillion won at the end of the first quarter of 2026
- Data source
- Bank of Korea household-debt database, based on credit information for about 2.35 million people
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