Young people have fewer places to borrow money, but seniors are taking out loans to join the debt-fueled investment craze [The Paradox of Mortgage Regulation (3)]

Over the past year, the number of household loan borrowers and multiple debtors has increased, particularly among the elderly.
Notably, while the total loan balance of all multiple debtors decreased, it was confirmed that the loan balance held only by multiple debtors in their 60s increased. Concerns are rising that the stability of retirement funds could be shaken as the phenomenon of "debt-fueled investment" among the elderly expands in tandem with the recent stock market rally. ■ Increase in Household Loan Borrowers and Multiple Debtors Among the Elderly According to data from NICE Information Service obtained by Financial News on the 2nd, both the number of household loan borrowers and the outstanding balance among the elderly aged 60 and older increased simultaneously over the past year.
The number of household loan holders aged 60 and older rose by 126,287, from 4,505,506 in the first quarter of last year to 4,631,793 in the first quarter of this year. 9040 trillion won. By age group, those aged 60 and older saw an increase in both the number of borrowers and the outstanding balance of household loans.
For those in their 30s, 40s, and 50s, the outstanding balance of household loans increased, but the number of borrowers decreased. For those aged 20 and under, both the number of borrowers and the amount held declined. Consequently, the total number of borrowers decreased from 19,863,663 in the first quarter of last year to 19,776,407 this year.
This is interpreted as borrowing demand continuing, centered on the elderly who possess relatively greater asset capacity, amidst persistent high interest rates and stringent lending regulations. The increase in multiple debts among the elderly was also notable. The number of multiple debtors aged 60 or older who have borrowed money from three or more financial institutions increased by more than 50,000 in one year, rising from 908,792 in the first quarter of last year to 959,154 in the first quarter of this year.
0035 trillion won. 1727 trillion won. The number of multiple debtors in their 50s also increased by approximately 14,000, rising from 1,513,618 to 1,527,387.
A financial industry official stated, "It is highly likely that the elderly have a higher proportion of secured loans utilizing assets such as real estate rather than unsecured loans," adding, "It appears that demand for loans is arising for various purposes, such as covering living expenses, investing, and supporting children, as income decreases after retirement. " ■ The 'Debt-fueled Investment' Craze Spreads to the Elderly The expansion of borrowing among the elderly coincides with the recent overheating of the stock market.
0227 trillion won as of the 29th of last month. The proportion of the elderly in margin loans from securities firms was also found to be high.
2 trillion won) in the first quarter of this year. Margin loans are investment products where investors borrow funds from securities firms using their stock holdings as collateral.
While they can boost returns during market upturns, they also increase the risk of losses, such as forced liquidation, if the market plummets. The market attributes this trend to expanded investment demand among the elderly, driven by growing interest in post-retirement asset management and declining attractiveness of savings and deposit interest rates.
In particular, analysts suggest that the shift of funds into the stock market following the slowdown in the real estate market has also had some influence. The concern is that leveraged investment by the elderly could undermine their "retirement safety net.
" This is because, after retirement when incomes begin to decline, the capacity to absorb shocks from rising interest rates or stock market corrections is relatively low. Another financial industry official stated, "We must also closely monitor the possibility that rising interest rate burdens or increased stock market volatility could escalate into delinquency risks for the elderly.
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stand@fnnews.com Seo Ji-yoon Reporter