South Korea’s young adults are facing record levels of household debt as weak job prospects and stagnant incomes intensify financial pressure, with average borrowing among people in their 30s surpassing $75,000 for the first time.
Data released on July 6 by the Bank of Korea and submitted to lawmaker Kim Seung-soo of the People Power Party showed that average household debt among borrowers in their 20s and 30s has nearly doubled over the past 12 years.
Average household debt among people in their 20s increased to 30.47 million won, or about $22,000, in 2025 from 16.11 million won, or roughly $12,000, in 2013, marking an 89.1% increase.
Borrowers in their 30s saw the largest increase among all age groups. Their average household debt climbed to 102.18 million won, or approximately $75,000, in 2025 from 53.74 million won, or about $39,000, in 2013, a 90.1% jump over the period.
Combined, average household debt among people in their 20s and 30s rose 89.9%, showing that younger generations have experienced a near doubling of their debt burden in just over a decade.
The increase among younger borrowers far exceeded growth among older age groups. Average household debt among people in their 40s rose 68%, while borrowers in their 50s and 60s recorded increases of 30.8% and 16.3%, respectively.
The age profile of South Korea’s most heavily indebted borrowers has also shifted. In 2013, average household debt levels were relatively similar across age groups, with borrowers in their 40s holding about $51,000, those in their 50s about $54,000, and people aged 60 and older about $51,000.
By 2025, debt levels had moved higher among younger and middle-aged borrowers. Average household debt reached about $75,000 among people in their 30s, $85,000 among those in their 40s and $71,000 among people in their 50s.
Kim said the rapid rise in debt among younger South Koreans highlights growing challenges related to employment, marriage and homeownership.
“The arrival of the first generation of people in their 30s with average household debt exceeding 100 million won reflects the difficult reality facing young people,” Kim said.
The financial struggles of younger South Koreans are also reflected in a recent survey by the Seoul Financial Welfare Counseling Center under the Seoul Welfare Foundation.
The survey examined 1,025 people aged 29 or younger who filed for personal rehabilitation and completed a financial counseling program last year. It found that daily living expenses and housing costs were the primary reasons young people initially accumulated debt.
Income disruptions caused by unemployment or job loss were the most common reasons borrowers were unable to repay loans. Many also entered a cycle of borrowing new money to repay existing debt, further increasing their financial burden.
