Seoul: One out of 20 self-employed individuals with loans were behind on their debt repayments as of last year, shedding light on the sluggish economy amid rising interest rates, data revealed on Wednesday. As of the end of 2025, a total of 166,562 self-employed loan holders were delinquent, indicating they had failed to make loan repayments for over three months.

According to Yonhap News Agency, the data from Nice Information Service Co., submitted to Rep. Park Sung-hoon of the main opposition People Power Party, highlighted that these delinquent borrowers accounted for 5 percent of all self-employed loan holders. This figure marks a significant increase from the 51,045 delinquent borrowers recorded at the end of 2021.

The data further disclosed that the loan delinquency rate surged most rapidly among individuals aged 60 and older. Their number escalated by more than fivefold from 7,191 in 2020 to 38,185 in 2025. The recent hike in interest rates seems to have posed substantial challenges for self-employed individuals who initially secured loans at ultra-low rates, as noted by the company.

The Bank of Korea initiated its monetary easing cycle in October 2024 but maintained the key rate at 2.5 percent since May last year. This move aims to cool the overheated housing market and manage household debt effectively.