People aged 60 and over owe more on average to non-bank lenders than banks

South Korean central bank data for the second quarter show that people aged 60 and over owed an average of 91.62 million won to non-bank lenders, compared with 80.29 million won to banks.

Non-bank lenders include savings banks, credit unions and mutual finance institutions, which generally charge more than banks.

People aged 60 and over were the only age group whose average non-bank loan balance exceeded their bank balance.

An economics professor said that lower income after retirement and weaker credit can make it harder for older people to borrow from banks.

Borrowers in their 20s also had nearly equal average balances at banks and non-bank lenders: 28.56 million won and 28.11 million won.

By contrast, average bank loans were higher than non-bank loans for people in their 30s and 40s.

The figures raise concern that older people and younger adults could face greater repayment pressure when interest rates rise, but no specific next steps are given.