▲ Real estate properties in Seoul
The median loan amount for newlyweds in their first marriage within five years of tying the knot has surged by 130% over the past eight years, an analysis showed.
In particular, the proportion of loans amounting to 300 million won or more has increased. Analysts suggest this is driven by the impact of aggressive borrowing, known as yeong-geul, to purchase homes, particularly among newlywed couples who own real estate.
According to the Korean Statistical Information Service (KOSIS) under the Statistics Korea today (September 28), the median loan balance for newlywed couples in their first marriage stood at 179 million won as of 2024.
This represents a 5.0% increase from the previous year.
Compared to 2016 (77.78 million won), when related statistics began to be compiled, it marks a 130.1% surge.
The loan balance includes household loans from tier-1 and tier-2 financial institutions, as well as corporate loans for sole proprietors.
The median value refers to the middle figure when the loan balances of couples with existing debt are arranged in order of size.
The median loan balance increased to 90 million won in 2017 and 100 million won in 2018. Accompanied by the upward trend in the real estate market, it surpassed 150 million won in 2021, reached the 160 million won range in 2022, and climbed to the 170 million won range in 2023 (170.51 million won).
Amid continuous increases in housing and jeonse (lump-sum housing rental) prices as well as steady rises in marriage-related expenses last year and this year, the median loan balance is projected to have grown even further.
Breaking down the data by loan balance brackets, the proportion of loans exceeding 300 million won spiked significantly, showing a heavy concentration in large-scale loans.
The proportion of loans of 300 million won or more jumped more than fourfold, from 5.3% in 2016 to 24.0% in 2024.
Conversely, the share of small loans under 10 million won dropped from 8.8% to 4.6% over the same period, while the proportion of loans between 10 million won and 30 million won also declined sharply from 14.7% to 5.7%.
The share of loans ranging from 30 million won to 50 million won similarly contracted from 12.1% to 5.6%.
Small loans have decreased, while the center of gravity has shifted toward large loans.
Differences according to home ownership were also substantial.
As of 2024, the proportion of loans of 300 million won or more among first-marriage newlyweds who owned a home stood at 33.2%, nearly double that of non-homeowners (16.7%).
The median loan amount for home-owning couples also reached 228.24 million won in 2024, exceeding that of non-homeowning couples (141.60 million won) by 86.64 million won.
The median loan balance for couples with homes has doubled over the past eight years from 112 million won in 2016.
This is seen as a reflection of the rising value of homes owned by newlyweds.
For newlywed couples owning homes in Seoul, the proportion of those holding residential properties with a total official publicly assessed price exceeding 600 million won jumped from 5.9% in 2015 to 31.4% in 2024.
Discrepancies were also found between dual-income and single-income couples.
The median loan amount for dual-income couples stood at 198 million won in 2024, over 40 million won higher than that of single-income couples (157.87 million won).
The proportion of large loans of 300 million won or more was also higher for dual-income households at 28.0% compared to 18.8% for single-income households, indicating a tendency for households with stable dual incomes to scale up their borrowing.
Differences also existed depending on the presence of children.
Newlywed couples with children recorded a higher median loan balance (188.26 million won) than childless couples (169.50 million won), and the proportion of loans of 300 million won or more was also higher among those with children (26.8%) compared to those without (21.1%).
Analysts interpret this as a sign that loan burdens have expanded alongside child-rearing costs and the need to secure larger housing spaces.
Concerns are rising that as the interest rate hike stance continues, a red light could turn on for the interest repayment capacity of newlyweds, who possess relatively lower incomes and shorter asset accumulation periods compared to middle-aged and older demographics.
The Bank of Korea raised the benchmark interest rate consecutively in July and August, bringing it up to 3.0%.
The COFIX (Cost of Funds Index) based on newly handled deposits in August stood at an annual 3.18%, matching the previous month. After rising for four consecutive months from April to July this year, it has reached its highest level in one year and seven months since December 2024 (3.22%).
(Photo: Yonhap News)
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