Nearly half (44.8 percent) of the youth population—about 4.16 million individuals—reported having debt, with the average outstanding loan balance amounting to ₩37 million. (Image created by AI/ChatGPT)
SEOUL, April 1 (Korea Bizwire) — South Korea’s young adults are grappling with limited income, high debt burdens, and increasing living costs, according to the newly released 2024 Youth Financial Status Survey by the Korea Inclusive Finance Agency.
The average annual income among young people aged 19 to 34 stood at ₩30.92 million (approximately $21,000 as of today), with the most common income bracket falling between ₩24 million and ₩36 million. Despite the modest earnings, average monthly spending on credit and debit cards reached ₩1.47 million.
Nearly half (44.8 percent) of the youth population—about 4.16 million individuals—reported having debt, with the average outstanding loan balance amounting to ₩37 million. Credit scores averaged 806.3, with the majority (57.8 percent) falling between 700 and 900.
The report, which surveyed a nationwide cohort of 9.27 million young adults, also shed light on saving and investment behavior. About 76.5 percent of respondents reported engaging in savings or investment activities, setting aside an average of ₩941,000 monthly. Popular vehicles included installment savings accounts (80.2 percent), home subscription savings (71.7 percent), and standard savings deposits (51.4 percent).
When asked about their financial goals, 46.5 percent cited saving for housing as the top priority, followed by building a financial cushion (15.9 percent) and covering living expenses (13.1 percent).
However, self-assessments of financial literacy and management were modest, averaging just 2.8 and 2.9 out of 5 points, respectively. Nearly half (49.9 percent) identified rising living costs as their most pressing financial issue, followed by difficulties securing rental deposits and managing housing-related debt.
In navigating financial concerns, young Koreans most frequently turned to family (48.8 percent), online communities (44.4 percent), and friends or acquaintances (37.9 percent) for information and advice.
The survey also included data on participants in the government’s Youth Leap Account program, a savings initiative tied to income-generating activity. These account holders reported higher average annual incomes of ₩34.53 million—₩3.61 million more than the broader youth cohort—as well as higher average monthly card spending (₩2.01 million). Their average loan balance was slightly lower at ₩28 million.
To support continued participation in the program, the Korea Inclusive Finance Agency announced it will launch a partial withdrawal option in July 2025. “This service will help young people access emergency funds without giving up long-term savings,” said Lee Jae-yeon, the agency’s president.
Lina Jang (linajang@koreabizwire.com)
