Debt, Back Pain, and the Dark Side of Self-Employment: A Cautionary Tale for Entrepreneurs Over 65 - News Directory 3

Debt, Back Pain, and the Dark Side of Self-Employment: A Cautionary Tale for Entrepreneurs Over 65

October 27, 2024 Catherine Williams Business
News Context
At a glance
  • [아이뉴스24 박은경 기자] It was found that older self-employed people have a high debt burden compared to their income.
  • According to an analysis conducted by the Korea Institute of Finance on the 27th based on sample data from the Korea Credit Bureau (KCB), the average ratio of...
  • Among older self-employed borrowers, those working in overcrowded industries such as wholesale/retail, food, and lodging industries had a greater burden of repayment.
Original source: inews24.com

[아이뉴스24 박은경 기자] It was found that older self-employed people have a high debt burden compared to their income. The older the person was and the more crowded the industry, the greater the burden of debt repayment.

According to an analysis conducted by the Korea Institute of Finance on the 27th based on sample data from the Korea Credit Bureau (KCB), the average ratio of total debt balance (LTI) to income for self-employed borrowers aged 65 or older was 10.2, exceeding the average LTI (8.0) for all self-employed borrowers. .

Image of a commercial area with a rental notice attached [사진=아이뉴스24 DB]

Among older self-employed borrowers, those working in overcrowded industries such as wholesale/retail, food, and lodging industries had a greater burden of repayment. The average LTI of self-employed borrowers in overcrowded industries was 10.9, which was higher than the average LTI of self-employed borrowers in non-overcrowded industries (8.8). In addition, 68% of self-employed borrowers aged 65 or older were in overcrowded industries.

The total loan balance of self-employed borrowers aged 65 or older was 450 million won, nearly twice the total loan balance of self-employed borrowers in their 30s (230 million won).

[자료=금융연구원][자료=금융연구원]

Income was relatively low. The average annual income of self-employed borrowers over the age of 65 was only 46 million won. It is higher than the average of self-employed borrowers in their 30s (KRW 42 million), but lower than the average annual income of people in their 50s (KRW 53 million) and the average annual income of people aged 60 to 64 (KRW 48 million).

Kim Hyeon-yeol, a researcher at the Korea Institute of Finance, suggested, “In case the debt burden of elderly self-employed borrowers increases compared to the repayment capacity, there is a need to secure sufficient access for the elderly to the various management, re-startup, and employment consulting services currently provided by the government for self-employed borrowers.” .

/Reporter Park Eun-kyung (mylife1440@inews24.com)