Novel coronavirus pneumonia outbreak in people.com.cn 2020, the 20 year old -39 year old population has surged. The analysis points out that the main reasons for the heavy debt of South Korean young people in their 20s and 30s are the decrease of income caused by economic contraction, excessive credit, rising rent and other factors.
According to the South Korean media “Jingxiang news”, citing a data released by the South Korean Institute of land and resources on January 19, in the second quarter of 2020, the income, consumption and debt of all the economically active population increased by about 2.9%, 9.3% and 1.2% month on month. Among them, the income, consumption and debt of people aged 20-39 increased by 4.0%, 10.6% and 5.9% on a month on month basis. The debt growth rate of the 20-30-year-old group is 4.9 times of the average level of the whole age group.
The decrease of income is the main cause of the increase of debt. South Korea’s Institute of land and Resources said that in the capital circle, Daegu City, gyeongshangbei road and other areas with serious epidemic situation, the 20-year-old and 30-year-old groups suffered heavy economic losses. Credit growth in these regions rose more than 30% in the first quarter of 2020 from a year earlier.
Excessive lending is also the main reason for the increase in debt. Compared with the first quarter of 2019, the average monthly total loans of the whole economically active population of South Korea increased by 2.6% – 6.3% in the first two quarters of 2020. During the same period, the total loans of 20-39 year olds increased significantly by 9.1% – 31.6%.
In addition, after the occurrence of COVID-19, rising housing prices and rentals for rent are all the main reasons for the increase in liabilities. The Korea Land Research Institute said that in the face of COVID-19’s long-term development, it is necessary to formulate long-term strategies to solve the employment difficulties and unemployment problems of the twenty or thirty year olds.