The average debt of the self-employed increased by 9.75 million won compared to the previous year…the delinquency rate fell

Designer Yoon So-hee of the Jeolla Ilbo

“After 9pm, we close early because there are no customers. This week’s ‘Christmas Special’ is still ringing the cancellation phone due to heavy snow, and even 2 or 3 customers are likely have stopped coming, so I’m at a loss as to what to do.”

On the 23rd, Mr. A, who runs a franchise restaurant in a commercial area in Songcheon-dong, Jeonju, as the cold wave hits the country.

Like Mr A, self-employed people in the province are very troubled by the interest burden that the debt per capita has caused as a result of the corona.

According to “Private Business Debt (Corporate) Job Administrative Statistics 2021” released by the National Bureau of Statistics on the 23rd, the average loan amount per self-employed person in December last year was 178.05 million, an increase of about 5.8% from 168.3 million and won the previous year.

Last year, the debt per self-employed person increased by 9.75 million won compared to the previous year, the largest increase ever since statistics were compiled. The delinquency rate fell due to the impact of policy support such as small business policy funds.

By consumption, home and business loans amounted to 86.88 million won and 91.17 million won, respectively.

An official from the National Statistical Office analyzed, “Although home loans have regulations such as DSR (Total Principal Debt Repayment Ratio), business loans from small business owners have increased in non-bank sectors with relatively low entry barriers.”

The average amount of loans by industry was highest in health and social welfare at 608.81 million won, followed by agriculture, forestry and fisheries at 312.19 million, manufacturing at 261.17 million, real estate at 256.43 million, and professional science and technology at 169.03 million won.

By gender, the average loan amount for men was 202.51 million won and for women 143.78 million won. By age, those in their 50s earned 203.79 million, those in their 40s earned 196.03 million, and those in their 60s earned 183.59 million.

The loan balance delinquency rate recorded the lowest level in three years, and the standard delinquency rate was 0.32%, down 0.08% the previous year.

The delinquency rate was the highest at 0.50% for those under 29, and the lowest at 0.30% for those aged 60-69 and over 70. However, the offending rate fell from the previous year in all age groups.

It is interpreted that the government’s policy measures, such as extending the maturity of loans and deferring the principal and interest repayment, have been effective.

An official from the National Statistical Office explained, “The average loan amount has increased the most since the statistics were compiled in 2017.”


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