Debt burdens are rising quickly among South Korea's newly married couples, with high-value loans of 300 million won or more climbing sharply, particularly among those who own a home.
Median Newlywed Debt 2.3 Times Higher in Eight Years
The median outstanding loan balance for couples in their first marriage stood at 179 million won ($129,000) in 2024, up 5.0% from a year earlier, according to the Korean Statistical Information Service (KOSIS) run by the Ministry of Data and Statistics on the 28th. That is 130.1% higher than the 77.78 million won recorded in 2016, when the data series began.
The loan balance covers household lending from banks and non-bank financial institutions as well as business loans taken out by sole proprietors. The median is the midpoint figure when the outstanding balances of indebted couples are ranked by size.
The annual median stood at 90 million won in 2017 and 100 million won in 2018 before continuing to climb. It passed 150 million won in 2021, reached the 160 million won range in 2022 and rose to 170.51 million won in 2023.
Alongside the larger balances, the share of high-value borrowers has widened. The proportion of newlywed couples owing 300 million won or more jumped to 24.0% last year from 5.3% in 2016. Conversely, the share owing less than 10 million won fell to 4.6% from 8.8%, and those owing between 10 million and 30 million won dropped to 5.7% from 14.7%. The 30 million to 50 million won bracket also shrank to 5.6% from 12.1%.
Homeowners and Dual-Income Couples Borrow More
The gap was pronounced depending on whether couples owned a home. Among first-marriage newlyweds who own a home, the median loan balance was 228.24 million won last year, 86.64 million won more than the 141.60 million won for couples who do not own a home. The share owing 300 million won or more was 33.2% for homeowning households, far above the 16.7% for non-homeowners.
The median for homeowning couples has roughly doubled from 112 million won in 2016. The increase is attributed to rising values of the homes they own and to the larger loans taken out to buy them. Among newlyweds in Seoul who own a home, the share whose combined official assessed property value exceeds 600 million won widened to 31.4% in 2024 from 5.9% in 2015.
Dual-income households also carried relatively larger loans. Their median balance was 198 million won last year, more than 40 million won higher than the 157.87 million won for single-income households. Dual-income couples also accounted for a larger share of those owing 300 million won or more, at 28.0% versus 18.8% for single-income couples.
Couples with children had a median balance of 188.26 million won, higher than the 169.50 million won for couples without children. The share owing 300 million won or more also diverged, at 26.8% for households with children and 21.1% for those without.
The heavier debt burden reflects rising home prices and jeonse (a lump-sum deposit lease) deposits, compounded by the costs of raising children and moving to larger homes. Should interest costs rise further, repayment capacity could come under pressure at newly married households, which have had relatively less time to build income and assets.
The Bank of Korea, meanwhile, raised its policy rate in July and again in August, lifting it to 3.0%. The cost of funds index (COFIX) for newly handled loans stood at 3.18% in August, the highest level since December 2024.
