Delinquent borrowers of retirement age are rising in South Korea, data showed Thursday, raising concerns that the trend may accelerate in line with its rapidly aging society.
A total of 18,342 people in their fifties or older filed for a debt workout last year, accounting for 24.2 percent of all debt workout applicants, according to the data by the Credit Counseling and Recovery Service.
Of the total, those in their fifties accounted for 19.4 percent, while the comparable figure for those in their sixties or older stood at 4.8 percent.
The data also showed that the portion of people in their fifties with low credit ratings came to 19.4 percent last year, more than doubling from 8.1 percent in 2002. The figure for people in their sixties or older also jumped more than three fold to 4.8 percent from 1.4 percent.
Experts said the rise comes as a growing number of seniors are struggling to cover living costs after retirement and job loss.
“The data reflects how people who have lost jobs or retired are facing financial difficulties since they still have to spend on education and living expenses,” said an official at the state-run agency.
South Korea is one of the world’s fastest graying countries, with concerns being raised about its slowing growth potential and lack of safety net for the elderly.
A separate survey by the government showed that economic difficulties and health problems were the biggest concerns for aging South Koreans.
South Korea became an “aging society” in 2000, with 7.3 percent of its population over 65. The country is expected to become an “aged society” by 2018, when more than 14 percent of its people will be 65 or older.
(Yonhap News)
