290,000 People with Bad Credit Rating Owing to Default Mobile Phone Charges

There are over 290,000 people with bad credit ratings as they haven’t paid a mobile phone charge.

Also, there are approx. 96,000 people who have bad credit ratings again after cancelled.

According to a report of parliamentary inspection of the administration submitted to National Policy Committee by Financial Supervisory Commission on September 13, there are 296,289 people with bad credit ratings owing to default charge of mobile phone. There are 96,000 people in 30’s, 88,000 people in 20’s, 78,000 people in 40’s, 22,000 people in 50’s, 12,000 people in 60’s and 289 people in below 20’s.

Out of people whose record of bad credit rating was deleted last April, 96,761 people became people with bad credit ratings again by the end of July. There were 1,530,000 people who are free from bad credit ratings owing to credit pardon last April.

According to the Korea Federation of Banks (KFB), there are 2,381,717 people with bad credit ratings increased by 71,611 persons for one month as of the end of July.

Totalizing that there are 7,728,248 persons with bad credit ratings, individuals with bad credit ratings are multiple debtors with average 3.2 arrears.

Individual persons with bad credit ratings decreased by 250,000 persons in June, but increased by 50,589 persons in July. Also, there are sharp increases in individuals with bad credit ratings.

In terms of reasons of people with bad credit ratings, there are special loan such as mobile phone charges, lending money and credit card in order. On the other hand, owing to a bankruptcy and financial system confusion, a registration of bad credit rating has decreased.

By a financial community, there are 1,238,036 people in banks, 885,801 people in credit card companies, 584,154 people in guarantee insurance companies, 465,366 people in public information and 346384 people in installment finance companies in order.

For the default amounts of people with bad credit ratings, there are 34.96% for below 5 million won, 16.82% for between 5 million won and 10 million won, and 48.22% for over 10 million won.

By ages, there are 9,000 people in 10’s, 395,000 people in 20’s, 682,000 people in 30’s, and 1,295,000 people in 40’s.

Sang-Chul Kim Dong-Won Kim sckim007@donga.com daviskim@donga.com