EL7.AI
Macro EconomyMedium•6 November 2026•
2 min read

South Korea’s Share of Older High-Risk Borrowers Rises to 19.9%

Key Facts

1Borrowers aged 60 or older made up 19.9% of high-risk borrowers at end-June 2026, compared with 15% at end-2021.
2Household loan delinquencies among borrowers aged 60 or older rose from 0.7% at end-2021 to 1.5% at end-June 2026.
3The share of high-risk borrowers whose annual debt equaled or exceeded their income was 25.8% among those aged 60 or older, compared with 11.4% among those aged 39 or younger.
4Balances for borrowers aged 60 or older rose by 700.5 billion won, or 6.9%, in the period through end-June 2026.

Borrowers aged 60 or older accounted for 19.9% of all high-risk borrowers in South Korea at end-June 2026, compared with 15% at end-2021, according to a report by Korea JoongAng Daily. Their rising share coincided with an increase in the household loan delinquency rate for this age group. The rate rose to 1.5% at end-June, from 0.7% at end-2021. The figures show repayment performance among older borrowers deteriorated during a period when their share of borrowers classified as high risk expanded. Their balances also increased, while borrowers in their 50s recorded a rise as well.

Among high-risk borrowers aged 60 or older, 25.8% owed annual principal and interest payments equal to or greater than their annual income at end-June 2026. The share was 11.4% among borrowers aged 39 or younger, less than half the level for the older group. The comparison highlights differences in debt burdens relative to income between the groups, without implying that all borrowers in either group face the same circumstances. The report defines high-risk borrowers as those with loans from 3 or more financial institutions who are in the bottom 30% of income or have credit scores of 664 or lower. The definition therefore combines borrowing from multiple lenders with low income or a low credit score.

Balances owed by borrowers aged 60 or older increased by 700.5 billion won, or 6.9%, in the period through end-June 2026. Balances for borrowers in their 50s rose by 285.3 billion won, or 2.1%, over the same period. Insurance policy loans also grew in both groups: balances for older borrowers rose 10.2% to 13.2 trillion won, while those for borrowers in their 50s increased 4.5%. The figures show balances rose across more than one age group, with a larger increase among older borrowers and growth in their insurance policy loans. Delinquency data put these increases in the context of mounting debt pressures on older borrowers.