A growing financial crisis is unfolding among South Korean youth, as new data paints a disturbing picture of how deeply young people are becoming entangled in cycles of debt. According to a survey conducted by the Seoul Financial Welfare Counseling Center, seven out of ten individuals in their 20s or younger who sought financial rehabilitation last year said their debt originated from trying to cover basic living expenses.

Even more alarming, 84% of these young people reported borrowing additional funds just to service existing loans or keep up with interest payments. The study surveyed 1,374 youths who applied to restructure their debts through a government-supported program that provides guidance on debt rehabilitation, repayment strategies, and financial education.

The figures are stark. About 31% of respondents had debts ranging between 40 to 60 million won, while another 22% reported owing between 60 to 80 million won. Shockingly, 15% were found to be buried under debts exceeding 100 million won—amounting to over $70,000.

Although some attributed their financial strain to high housing costs or overspending, the dominant reason cited was simply the rising cost of everyday living. This basic need has become a leading driver of youth borrowing in South Korea, underscoring how precarious their financial reality has become.

The psychological toll is just as devastating. An overwhelming 93% of surveyed youth said they experienced emotional hardship in the past year, and nearly one in three admitted to having suicidal thoughts. These numbers highlight the deep mental health crisis running parallel to the economic one.

The Seoul Financial Welfare Counseling Center is working to address the issue by promoting its support programs more widely. Their goal is to encourage young individuals who feel overwhelmed to seek help before turning to more dangerous alternatives.

Worryingly, civic groups have recently raised red flags about young people falling prey to South Korea’s illicit private lending market. These underground lenders often charge astronomical interest rates—sometimes over 15,000%—and resort to blackmail tactics, further endangering already vulnerable youth.

This data provides a sobering snapshot of the burdens that South Korean youth are carrying. It also emphasizes the urgent need for systemic reform and accessible financial support to prevent further escalation of what is clearly a nationwide crisis.