Young generations of South Korea are struggling to find a solution to their ever-growing crushing debt.
The Financial Services Commission surveyed 1,700 young Koreans adults and found that 16% of Koreans between the ages of 19 and 31 borrowed money, and 11.1% of them can’t repay them in time.
They revealed that the age group was short on money because of the high living expenses and difficulties in finding a job.
College students are spending more than they earn from allowances and part-time jobs, and most already have a large loan out for their tuition.
They usually turn to their parents for extra money, but 34.5% responded that they had no one to ask for financial support.
So they turn to extra bank loans, while some even turn to finance companies and credit cards that have ridiculously high interest rates.
Although the unemployment rate in Korea is 3.4%, the unemployment rate for the 20’s age group is 9.2%.
The serious unemployment rate forced many to take out loans, resulting in a change of the young culture in Korea.
Young adult Koreans experiencing unemployment and financial difficulties live on cheap instant food from convenience stores.
Cheap hobbies have become very popular, such as doll crane machines and coin Karaoke.
With 1,000 won (~$0.90 USD), they briefly escape reality to a place away from their financial and societal stress.
This phenomenon is strongly correlated to why people in Korea choose to prefer an isolated social life.
Although the Korean government continues to research ways to help alleviate the crushing debt, the final solution doesn’t seem to be in sight.
Source: Korea JoongAng Daily