South Korea is seeing a sharp rise in overdue payments on credit-line loans, with borrowers in their 20s and 60s hit hardest, according to a report by 한겨레. The delinquency rate for these two age groups is running about 1.5 times higher than the national average for such loans.
The report, published Sunday, links the trend to a recent stock market downturn. Many borrowers had used credit-line loans—often called "마통" (a slang term for a credit line tied to a bank account)—to invest in equities during a bull market. With share prices now falling, those borrowers are struggling to repay.
한겨레's analysis shows that the problem is not confined to one demographic. Both younger and older borrowers are showing elevated stress, though the underlying causes may differ. Younger borrowers may face weaker income stability, while older borrowers often have less time to recover from losses.
The report comes amid broader concerns about household debt in South Korea. Other outlets covering the same data point to a tightening lending environment. The Energy Economy newspaper notes that loan limits, rather than interest rates, are becoming the bigger hurdle for borrowers, as banks scale back availability. The Korea Economic Daily separately described scenes of borrowers queuing before dawn for a limited number of loan slots, with applications closing within minutes.
These signs point to a two-sided squeeze: borrowers who overextended during the rally are now facing margin calls or repayment pressure, while new credit is becoming harder to access.
What to watch next: Whether the delinquency trend spreads beyond the 20s and 60s age groups, and how banks respond with further lending restrictions.
