Seoul - The nonredemption rate for student loans in South Korea has escalated to the highest level in over a decade, reported the National Tax Service on Saturday. In 2023, approximately 66.1 billion won (US$47.8 million) worth of employment-contingent student loans remained unpaid, constituting 16.4% of all such debt.
According to Yonhap News Agency, this rate of default surpasses any year since 2012, reflecting a troubling trend in the nation's economy, particularly its impact on young job seekers. The rising job instability has deterred many from fulfilling their loan obligations, exacerbating financial uncertainty among the youth. This economic indicator highlights ongoing challenges within Asia's fourth-largest economy, where youth unemployment continues to pose significant concerns for future growth and stability.