There is a phenomenon in which the delinquency rate of mortgage loans for borrowers in their 20s or younger is overwhelming other age groups. Young people who just started their social life are in a situation where they have not been able to repay their principal and interest due to high interest rates.
According to data submitted by National Assembly member Yang Kyung-sook from 19 banks (market, regional, and Internet banks) through the Financial Supervisory Service on the 11th, the delinquency rate for all mortgage loans was 0.24 percent as of the end of the third quarter of this year, double that of a year ago (0.12 percent). During the same period, the total delinquency amount more than doubled from 760 billion won to 1.56 trillion won.
In particular, the delinquency rate for mortgage loans among those in their 20s and younger recorded 0.39%.
The percentage of delinquent principal and interest payments for more than a month jumped 0.15 percentage points from the same period last year (0.24 percent), significantly higher than other age groups.
At the end of the third quarter of 2021, the delinquency rate for those in their 20s or younger was 0.14%, surpassing those in their 30s (0.08%), 40s (0.10%), 50s (0.12%), and 60s or older (0.13%). Previously, the delinquency rate for those in their 50s or 60s was relatively high.
The delinquency rate for those in their 20s and younger reached a record high of 0.44 percent at the end of the second quarter of this year, down slightly from the previous quarter, but remains high. The delinquency rate of these generations also hit a new high of 150 billion won (140 million U.S. dollars) at the end of the second quarter. Although the figure declined slightly to 140 billion won (126 million dollars) at the end of the third quarter, it was more than 50 percent higher than the same period last year (90 billion won). Meanwhile, the health of people in other age groups other than those in their 20s is also noteworthy.
The delinquency rate for those in their 30s rose from 0.09 percent at the end of the third quarter last year to 0.20 percent at the end of the third quarter this year. The delinquency rate also increased from 150 billion won (140 million U.S. dollars) to 340 billion won (3430 million dollars). The delinquency rate for those in their 40s rose from 0.12 percent to 0.23 percent, while the delinquency rate increased from 220 billion won to 470 billion won. The delinquency rate for those in their 50s (0.13 → 0.25 percent) and delinquency amount (180 billion → 370 billion won) were the same. For those in their 60s and older, the delinquency rate increased from 0.13 percent to 0.23 percent, and the delinquency amount increased from 130 billion won to 240 billion won.
SOPHIA KIM
US ASIA JOURNAL
