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One in 20 self-employed borrowers late on loan repayments as economy slows down, data shows

Published: 18 Feb. 2026, 15:56

A man moves ingredients before opening for business at a restaurant district in Seoul, in this file photo taken on Jan. 26. [YONHAP]

One in 20 self-employed people with loans was late on their debt repayments as of last year, highlighting the sluggish economy amid rising interest rates, data showed Wednesday.

As of end-2025, a total of 166,562 self-employed loan holders were delinquent, meaning they had failed to make loan repayments for more than three months, according to the data from Nice Information Service submitted to Rep. Park Sung-hoon of the main opposition People Power Party.

They accounted for 5 percent of all self-employed loan holders, according to the data.

The number jumped more than three times from 51,045 tallied at end-2021.

The loan delinquency rate grew fastest among those aged 60 and older, with their number jumping by more than fivefold from 7,191 in 2020 to 38,185 in 2025, according to the data.

The recent rise in interest rates appears to have caused significant difficulties for self-employed people who took out loans at ultra-low rates, the company noted.

The Bank of Korea began its monetary easing cycle in October 2024 but has held the key rate steady at 2.5 percent since May last year, in an effort to cool the overheated housing market and rein in household debt.

Yonhap