Alarming Signs from Self-employed as Debt Grows

The debt of self-employed businesspeople increased by 9 percent last year, adding to the total amount of bank loans of 100 trillion won (US$94 billion) last year.  

According to figures released by four major banks including Kookmin, Woori, Shinhan, and Hana, the amount of bank loans to self-employed businesspeople totaled 105.6 trillion won (US$100 billion) last year.  

This increase is two to four times more than mortgages and credit loans, which grew at about two to four percent last year.  

By the same token, the Small and Medium Business Administration (SMBA) reported that last year’s average monthly revenue for the self-employed was 8.9 million won (US$8,228), 11 percent lower than 2010’s 9.8 million won (US$9,212).