"Even When We Earn, We’re Still in Debt"...Average Household Borrowing Per Person Tops 97 Million Won

The Financial News reported that the average outstanding household loan per borrower in Korea has surpassed 97 million won, hitting an all‐time high. Total household debt is also nearing 1,913 trillion won, continuing its steep upward trend.
According to data the Bank of Korea (BOK) submitted to Park Sung-hoon, a member of the Strategy and Finance Committee from the People Power Party, the average outstanding household loan per borrower stood at 97.21 million won at the end of the third quarter of last year. This is the highest level since related statistics began in 2012.
Per‐capita outstanding debt came to 93.32 million won at the end of the second quarter of 2023 and has been on an upward trajectory for nine consecutive quarters. Compared with a year earlier, at the end of the third quarter of 2024, when it was 95.05 million won, the figure has increased by more than 2 million won in a year.
The total number of borrowers rose from 19.68 million at the end of the fourth quarter of 2024 to 19.71 million at the end of the first quarter of last year, then remained flat at the end of the second quarter before falling back to 19.68 million at the end of the third quarter. This is the lowest level since the end of the fourth quarter of 2020, when the figure was 19.63 million.
Total outstanding household loans have been increasing for six straight quarters since reaching 1,852.8 trillion won at the end of the first quarter of 2024. The balance exceeded 1,900 trillion won for the first time, climbing to 1,903.7 trillion won at the end of the second quarter of last year, and further expanded to 1,913 trillion won by the end of the third quarter.
By age group, people in their 40s had the highest average outstanding bank loans per person, at 114.67 million won, marking a record high. Those in their 50s (93.37 million won) and borrowers in their 30s and younger (76.98 million won) also posted their largest figures on record.
In contrast, borrowers aged 60 and older had an average of 76.75 million won in outstanding bank loans, slightly down from 77.71 million won in the previous quarter. Average non‐bank borrowing per person came to 39.51 million won for those in their 30s and younger, 48.37 million won for people in their 40s, 45.15 million won for those in their 50s, and 55.14 million won for borrowers aged 60 and above.


hsg@fnnews.com Han Seung-gon Reporter