A jewelry store in Seoul (Yonhap)
SEOUL, June 2 (Korea Bizwire) — Young South Koreans facing financial difficulties or in urgent need of money are increasingly relying on pawn shops.
A well-known pawn shop in Gangnam district, Seoul, accepts various items as collateral for loans, including the latest smartphones, laptops, and cameras that are entrusted by people in their 20s and 30s.
According to the shop owner, a young man recently borrowed approximately 150,000 won (US$114) by leaving a Dupont lighter as collateral.
While some individuals reclaim their collateral after utilizing the borrowed money, there has been an increase in cases where items are not reclaimed, indicating that the financial situations of these individuals have not improved.
Consequently, there has been a sharp increase in the number of customers requesting consignment sales for the items they wish to pawn right from the start.
Pawn shops purchase the items provided as collateral and offer money within the appraised value range of the goods.
Experts suggest that as the credit loan market tightens with higher interest rates, the demand for pawn shops as a solution for urgent cash needs is growing.
J. S. Shin (js_shin@koreabizwire.com)
