The amount South Korean university students borrow to cover meals and transportation has risen more than 30% in two years, and the number unable to repay is climbing as well, worsening the country's youth debt problem.
Living-cost loans to university students totaled 850.6 billion won in 2025, up 209.93 billion won, or 32.8%, from 640.67 billion won in 2023, according to data submitted by the Korea Student Aid Foundation to the office of Rep. Kang Kyung-sook of the Rebuilding Korea Party, a member of the National Assembly's Education Committee, on the 1st. The number of loans over the same period rose to 457,129 from 432,171.
The increase was steeper among lower-income borrowers. Living-cost loans to low-income students — recipients of basic livelihood benefits, the near-poor bracket and income brackets 1 through 3 — rose to 363.474 billion won from 271.5 billion won, an increase of 91.974 billion won, or 33.9%. By bracket, bracket 3 posted the sharpest rise at 39.2%, followed by bracket 2 at 35.5%, recipients of basic livelihood benefits at 32.4%, bracket 1 at 31.6% and the near-poor bracket at 31.0%.
The growth was not confined to low-income students. Loans to those in brackets 9 and 10 rose to 103.79 billion won from 89.15 billion won, while loans to students whose income bracket was not determined rose to 109.26 billion won from 75.88 billion won.
Delinquencies are also rising quickly. The number of borrowers behind on living-cost loan payments rose 29.8% to 8,101 in 2025 from 6,241 in 2023. The overdue balance grew 31.1% to 38.69 billion won from 29.52 billion won over the same period. Loan-loss provisions for all student loans rose 11.0% to 790.21 billion won in 2025 from 711.76 billion won in 2023, pointing to greater risk of defaults.
The Korea Student Aid Foundation said a survey of 44,818 living-cost loan borrowers conducted last year found that most were using the money for its intended purposes, such as food and transportation.
Kang argued that checkbox clicks and self-reported surveys alone cannot establish what is actually happening. "We need to pursue detailed research on the structure of youth debt by income bracket and on how students are drawn into borrowing to cover living expenses, and we need to build a one-stop system of debt restructuring and psychological and financial support for young people in arrears," the lawmaker said.
