Health and Welfare Policy Forum

Current Status of Youth Debt and Policy Tasks for Debt Adjustment Programs in Korea

  • Author

    Na, Wonhee

  • Page

    31-48

  • PubDate

    2026. 10.

  • Language

    kor

This article examines the current state of indebtedness among young adults aged 19-34 and discusses the effectiveness and limitations of the debt adjustment system. Youth indebtedness results from the combined financial demands associated with the transition to adulthood, including student loans, housing costs, and living expenses. It is characterized less by the overall amount of debt than by structural vulnerabilities such as low creditworthiness, multiple outstanding debts, and medium-term delinquency. Delinquency rates are rising more rapidly among young adults than among any other age group. Debt problems are becoming increasingly persistent for young people as their entry into the labor market is delayed and, consequently, the attainment of stable income is postponed. Compared to non-users, those who reported using a debt adjustment program saw significant improvements in debt reduction, the management of depressive symptoms, and inter-personal relationships, although no improvements were found in objective employment indicators, such as the number of new labor-market entrants or income. In practice, the effectiveness of the debt adjustment system is found to be constrained by high entry barriers, complex procedures, regional disparities in implementation, and a lack of follow-up management. This article suggests that improving the debt adjustment system requires establishing a comprehensive counseling system to assist individuals before they enter the system, strengthening follow-up management, and revising performance indicators.

Attachments

공공누리 공공저작물 자유 이용허락, 출처표시, 상업적 이용 금지, 변경금지
  • No

    Subject

    Author

    Summary

    View

  • 8

    Health and Welfare News in Brief

    Ministry of Health and Welfare