Private Money Lending in South Korea Sees 5.5% Increase in Second Half of Last Year
Quick Look
South Korea's private money lending increased by 5.5% to 13.14 trillion won (US$8.56 billion) in the second half of last year, with a 2% rise in borrowers to 731,000, despite a decrease in registered lenders to 7,696.
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Why It Matters
Private money lending in South Korea has been under regulatory scrutiny due to concerns over high-interest rates and debt accumulation among low-income households.
SEOUL, June 28 (Yonhap) -- Loans extended by private money lenders in South Korea increased in the second half of last year from the previous six months, data showed Sunday. As of end-December, outstanding loans from private money lenders stood at 13.14 trillion won (US$8.56 billion), up 685 billion won, or 5.5 percent, from 12.5 trillion won tallied six months earlier, according to the data from the Financial Supervisory Service (FSS). The number of people who borrowed money from private lenders also rose 2 percent to some 731,000 from about 717,000 over the cited period. Meanwhile, the financial watchdog said the number of registered private money lenders came to 7,696 at end-December, down 507 tallied six months before.
What to Watch
AI outlook — possibilities, not facts
Tighter regulations on private lending
Likely · Within months
Open Questions
- Regulatory actions planned in response to the increase
