In South Korea, consumer debts are on the rise, marked by a series of interest rate hikes in the banking sector. KB Kookmin, Woori Bank, NongHyup Bank, and, most recently, Shinhan, have raised interest rates on various loans.
Education lending in South Korea has seen a consistent rise in outstanding balance over the years, outperforming the growth rate of education gross lending, with several factors contributing to challenges in repayment. Individual rehabilitation and bankruptcy emerge as primary reasons for difficulties in settling student loans.
In response to the consistent increase in demand for consumer credit over seven consecutive months in 2023, financial authorities and the government in South Korea are taking measures to revise the debt-to-income ratio (DSR) system. One significant regulatory introduction is the "stress DSR" regulation, designed to limit DSR exceptions to vulnerable individuals and incorporate additional interest rates, considering the potential impact of rising interest rates, especially for loans with variable interest rates.
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Understand the latest market trends and future growth opportunities for the Consumer Credit industry in South Korea with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Credit industry in South Korea, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Consumer Credit
Non-mortgage consumer debt extended to individuals for personal or household use including installment loans and credit cards. Examples of consumer credit include auto lending, card lending, durables lending, education lending, home lending and other personal loans. Consumer credit includes both revolving and non-revolving credit.
See All of Our DefinitionsThis report originates from Passport, our Consumer Credit research and analysis database.
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