Is Debt Held by Self-Employed Reaching New Heights at $746 Billion in Q2?
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Synopsis
The self-employed sector is facing unprecedented debt levels, reaching $746 billion. This alarming trend not only highlights financial challenges but also raises concerns about economic stability. Discover the implications of this record debt and the urgent need for remedial measures.
Key Takeaways
- Record debt levels for self-employed reach $746 billion.
- Delinquency rates surge to a 12-year high.
- Policy support is essential for financial recovery.
- Chuseok holiday travel sees unprecedented numbers.
- Regional travel trends highlight shifts in preferences.
Seoul, Oct 12 (NationPress) The debt accumulated by the self-employed has soared to a staggering 1,070 trillion won (approximately $746 billion) in the second quarter of this year, as indicated by recent data.
Loans provided by financial institutions to self-employed individuals totaled 1,069.6 trillion won by the conclusion of the April-June period, reflecting an increase of 2 trillion won from the previous quarter, according to statistics from the Bank of Korea.
This marks the highest figure since the central bank began tracking such data in 2012.
Meanwhile, the delinquency rate among self-employed borrowers, particularly in lower income brackets, has surged to a 12-year peak at the close of the second quarter. The rate experienced a rise of 0.15 percentage points from the earlier quarter, reaching 2.07 percent. This is the highest level since the 2.84 percent recorded in the third quarter of 2013.
In a separate report released last month, the Bank of Korea expressed concerns over the increasing risks associated with the growing number of financially vulnerable self-employed individuals.
The central bank underscored the necessity for tailored debt restructuring initiatives and policy support aimed at assisting the self-employed in regaining their income, especially those enduring prolonged challenges due to elevated borrowing costs amidst a sluggish economy.
Additionally, over 210,000 travelers passed through Incheon International Airport daily during this year’s eight-day Chuseok holiday, establishing the highest daily average for this holiday, as reported on Sunday.
From October 2 to 9, an average of 217,613 passengers utilized the airport, up by 6.4 percent compared to the same timeframe last year, according to airport data. In total, 1.74 million travelers navigated through South Korea's main gateway airport, located west of Seoul, during this period.
This figure represents the highest daily average for the Chuseok holiday since the airport's inauguration in 2001, and the second highest for all holiday periods, following the record daily average of 219,026 set during this year's Lunar New Year holiday, according to airport officials.
Regionally, 448,081 individuals traveled to and from Southeast Asia, followed by Japan with 431,827 and China with 296,168, the data revealed.
Point of View
It is crucial to recognize the challenges faced by the self-employed sector amid rising debt and financial vulnerability. The need for strategic interventions and support is paramount to ensure the sustainability of this segment, which plays a vital role in our economy.
NationPress
12/10/2025
Frequently Asked Questions
What is the current debt level for the self-employed?
The debt held by the self-employed has reached a record high of approximately $746 billion (1,070 trillion won) as of the second quarter of this year.
What are the implications of rising delinquency rates?
Increasing delinquency rates among self-employed borrowers indicate significant financial strain and pose risks to economic stability, necessitating targeted policy support.
What measures are being considered to support the self-employed?
The Bank of Korea is advocating for tailored debt restructuring measures and policy interventions to assist financially vulnerable self-employed individuals.
How has the Chuseok holiday travel been affected?
Chuseok holiday travel saw a significant increase, with over 210,000 daily travelers at Incheon International Airport, marking a new record for daily averages.
Which regions saw the most travelers during Chuseok?
The majority of travelers during the Chuseok holiday traveled to Southeast Asia, Japan, and China, highlighting regional travel trends.
