Individual Credit Delinquency Reaching 2,570,000

The number of individual credit delinquency, which has been on the continuous rise, is reaching around 2,600,000.

The number is likely to further increase when banks and credit card companies strengthen credit management policies and all the lending records are complied by the Korea Federation of Banks from January 1st next year.

The Korea Federation of Banks said on Dec. 23 that as of the end of November, the number of individual credit delinquency increased to 2,573,707 which marked a 1.77% increase, compared to October`s figure, 44,762.

The each month increase in number was 5,589(2.24%) in July, 71,611(3.10%) in August, 73,410(3.08%) in September, and 73,818(3.01%) in October.

However, the number of credit delinquency related to credit cards use, such as credit cards payments and card loans stood at 1,422.311 which accounts for 55% of the total number of the individual credit delinquency and the number increased by as many as 50,000, 3.6% up from October.

Reasons why those people are listed as credit delinquency include credit card payment overdue (including cash advance service) and card loans. Card loans increased to 466,541 cases, 21.6% up from October and Credit card payment overdue cases were 1,050,000, 10.8% up, which was way beyond of the total increase in average.

Individual insolvency related to credit card uses is becoming a serious social problem in recent days.

In age groups, the number of the credit delinquent in their 20s reached 463,624 which marked a 3.74% increase (16,732), compared to October. That means youth over-consumption has reached to a serious point posing a social concern.

Do-Young Kim nirvana1@donga.com