Around 2.5 million people nationwide have borrowed more than 11 trillion won from moneylenders that levy high interest rates. Both the number of the customers and the per capita amount of the loans have increased.
According to the Financial Services Commission (FSC), the number of customers who borrowed money from moneylenders last year was up 0.3 percent from the previous year.
Each of them borrowed 4.5 million won on average, or 11.1 percent more than the previous year.
When asked for what purpose they borrowed the money, 48.3 percent said for living expenses while 31.4 percent cited business investment.
Over half of the customers were salaried workers, while 26.2 percent were self-employed. The ratio of housewives also stood at 8 percent.
Most of them had poor credit ratings, with 77.1 percent of the customers in the bottom 40 percent in ratings lists.
The FSC said that only big moneylenders are surviving in the market ― their number decreased by 6.8 percent last year to 8,694, while the total balance of loans increased 11.4 percent to 11.2 trillion won. Of the 11.2 trillion won, 6.7 trillion won was provided by the biggest 10 moneylenders.
Analysts say that small moneylenders closed down after the government lowered the interest rate cap to an annual 34.9 percent from 39 percent last year.