Debt⁣ Burden on‌ Self-Employed Seniors: A Growing Concern

Analysis has shown that for self-employed seniors aged 65 or older who are in debt, the amount of debt exceeds 10 times their ⁢annual income.

According to the Korea Institute of Finance’s ⁣report on ‘Status of Debts and Implications ​of Self-Employed ‌Borrowers in the Elderly Group’, the researcher analyzed Korea Credit Bureau (KCB) data and found that as of⁢ the end of the second quarter⁣ of ⁤this year (April​ to June), self-employed borrowers aged 65 or older had a total loan balance averaging 450 million ⁤won. This is approximately twice the average ​for​ self-employed borrowers in their 30s (230 million won). As the age of ​self-employed borrowers increases, the total loan balance also increases.

In terms of annual income, the average for self-employed borrowers over the age of 65 was 46‍ million won, which​ was higher than that of those in their 30s (42 million ⁣won), but lower than that ‌of those in their 40s (53 million won), 50s (53 million won), and 60-64⁤ years old (48 million won).

The total debt balance ratio (LTI) to annual income was calculated by adding up personal business loans and household loans. The average LTI was found to be higher as the age group increased. ‌In particular, the average LTI of self-employed⁢ borrowers aged 65 or older was 10.2 times, exceeding the average of all self-employed borrowers (8.0). This means that the amount of debt is more than 10 times ⁣compared to income.

According to the report, among older self-employed people, the LTI was found⁣ to​ be higher for those working in overcrowded industries such as wholesale and retail, food and lodging, agriculture, forestry and fisheries, education, and real estate.

These findings highlight the ‌need for policymakers to ‌address ⁢the growing debt burden on self-employed⁣ seniors and explore ways to provide support and ‌relief ​to this vulnerable group.