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South Korean Youth Debt on the Rise
New data shows that South Korean youth debt is increasing, with crypto investments leading many young people to bankruptcy courts.
Report on Debt-related Cases
The Seoul Rehabilitation Court released a report on debt-related cases for the Financial Year 2023, indicating a 31% rise in “personal rehabilitation” applications.
Impact of Crypto Investments and Stock Market Purchases
The rise in case numbers is attributed to “crypto investment” and “stock market purchases” among individuals aged 20-29.
Annual Personal Rehabilitation and Bankruptcy Case Statistical Survey
The Seoul Bankruptcy Court’s annual report revealed 19,379 individuals applied for rehabilitation or bankruptcy in FY2022, up from 14,826 in FY2022.
Rehabilitation System in South Korea
In South Korea, the rehabilitation system allows individuals facing debt issues to avoid legal bankruptcy by adhering to court-assigned debt repayment plans. Failure to comply leads to bankruptcy protocols.
Rise in Personal Rehabilitation Applications
Personal rehabilitation applications from individuals in their 20s have been steadily increasing over the years, with a notable rise from 10.3% in the first half of 2021 to 17% in the second half of 2023.
Crypto Investments and Economic Activities
The court’s analysis attributes the rise in youth debt to the expansion of economic activities, including cryptocurrency and stocks, among individuals in their 20s.
Call for Crypto Regulation
Judge Lee Seok-jun of the Seoul Bankruptcy Court emphasized the need for more crypto regulation to protect investors, highlighting legislative oversights that hinder court interventions.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
