University students receive advice during a job fair at Yeungnam University in North Gyeongsang Province, Thursday. Yonhap

The number of people in their 20s falling into credit delinquency — missing loan repayments — has increased, largely due to high interest rates, soaring prices, and difficulties in finding jobs, according to an opposition lawmaker, Monday.

Rep. Lee Gang-ill of the main opposition Democratic Party of Korea released data from the Financial Supervisory Service, revealing that 65,887 people in their 20s were registered as credit delinquents with the Korea Credit Information Services (KCIS) as of July.

This represents an increase of 25.3 percent in the number of credit delinquents among people in their 20s compared 2021.

Considering that the total number of credit delinquents increased by around 8 percent from 548,730 to 592,567 during the same period, the increase among those in their 20s is even more pronounced.

A credit delinquent is registered with the KCIS when their overdue period exceeds a specified timeframe — three months past the loan's maturity or six months past the due date. These individuals face various financial disadvantages, including the suspension of their credit cards, restrictions on taking out loans, and a drop in their credit ratings.

A notable characteristic of youth debt is the large number of borrowers struggling to repay loans that are under 10 million won ($7,400).

As of July, 73,379 people in their 20s were registered with credit bureaus for short-term delinquencies, excluding credit card payment issues. Among them, 64,624, or 88.1 percent, owed less than 10 million won. This indicates that nearly nine out of 10 loan delinquents in their 20s have relatively small amounts of debt.

Rep. Lee noted, that given that the delinquent amounts are relatively small, a significant number of young people seem to be struggling with living expenses or housing costs. He raised concerns that the younger generation is facing economic hardships from high interest rates and inflation, along with difficulties in securing stable jobs due to the economic slowdown.

According to government data, the number of employed individuals aged 15 to 29 has been decreasing annually since November 2022.

In July, the number of young people who were neither employed nor seeking employment reached 443,000.

"Amid the economic slowdown, the reduction in new jobs for people in their 20s has resulted in small loan delinquencies, highlighting the financial difficulties young people face," Lee said.

"Addressing youth delinquency through financial solutions like debt restructuring alone seems to be insufficient. Comprehensive youth policies, including job creation and broader social policies, must be implemented at the macro level."