Korean newlyweds start married life with growing debt as loans double

Kim, a 37-year-old office worker in Gyeonggi Province, spends much of his monthly pay repaying a loan he took out to buy a home when he married two years ago. His wife has a loan of her own, adding to the couple’s repayment burden.

“We had to borrow to cover housing and wedding costs, even with help from our parents,” Kim said. “With interest rates rising, I’m worried our payments will grow. After paying for utilities, phone bills and basic living expenses, we put most of our pay toward the loans.”

Rising home prices, rents and wedding costs are leaving more newlyweds like Kim with sizable debts.

Figures released on Monday by the Ministry of Data and Statistics show that the median outstanding loan balance among couples in their first marriage who have been married for no more than five years more than doubled over eight years. In particular, high-value loans of at least 300 million won ($221,000) have become much more common, particularly among couples who own a home.

The median outstanding balance stood at 179 million won in 2024, up 5 percent from a year earlier and 130.1 percent from 77.78 million won in 2016, when comparable data collection began.

The median is the midpoint of the outstanding balances held by couples with loans.

The figure rose from 90 million won in 2017 to 100 million won in 2018. It exceeded 150 million won in 2021 as the property market strengthened, climbed into the 160 million won range in 2022 and reached 170.5 million won in 2023.

The shift toward larger loans was pronounced. The share of first-time newlyweds owing at least 300 million won rose from 5.3 percent in 2016 to 24 percent in 2024. Among homeowners, the share was 33.2 percent, nearly twice the 16.7 percent recorded for couples without a home, suggesting home purchases were a major driver of borrowing.

Homeowners had a median outstanding balance of 228.2 million won, compared with 141.6 million won for couples without a home. The figure for homeowners was also roughly double the 112 million won recorded in 2016.

Couples with children owed a median of 188.3 million won, compared with 169.5 million won for those without children. Some 26.8 percent of couples with children owed at least 300 million won, versus 21.1 percent of childless couples. The gap may partly reflect borrowing for larger homes as families grow.

Higher rates could make those debts harder to manage for newlyweds who have had little time to build assets. The Bank of Korea raised its policy rate in both July and August, bringing it to 3 percent.