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Debt held by self-employed hits record high in Q2: BOK

Published: 12 Oct. 2025, 12:43

A ‘For Rent’ banner hangs on a commercial building in Seoul on Sept. 11. [NEWS1]

Debt held by the self-employed reached a record high of nearly 1,070 trillion won ($746 billion) in the second quarter of this year, data showed Sunday.

Loans extended by financial institutions to self-employed individuals amounted to 1,069.6 trillion won as of the end of the April-June period, marking a sharp increase of 2 trillion won from the end of the previous quarter, according to the data by the Bank of Korea (BOK).

This represents the highest level since the central bank began compiling related statistics in 2012.

The delinquency rate among self-employed borrowers in lower income brackets also surged to a 12-year high as of the end of the second quarter, the data showed.

The rate rose by 0.15 percentage points from the previous quarter to reach 2.07 percent as of the end of the second quarter, marking the highest level since 2.84 percent was recorded in the third quarter of 2013.

In a separate report released last month, the BOK warned of growing risks stemming from the rising number of financially vulnerable self-employed individuals.

The central bank emphasized the need for targeted debt restructuring measures and policy support to help the self-employed recover their income, particularly those facing prolonged hardship due to high borrowing costs amid the sluggish economy.

Yonhap