SEOUL, 23 Feb. (Korea Bizwire) — In Seoul, most of those who filed for bankruptcy were over 50 and single-person households accounted for more than half of them, the city’s welfare center said on Tuesday.
The number of personal bankruptcy petitions filed with the Seoul Bankruptcy Court last year stood at 10,873, up 15.8% from the pre-COVID-19 year of 2019, according to the Seoul Financial Welfare Counseling Center.
The number of personal bankruptcy applications through the center amounted to 1,290 cases, representing 11.8% of the total applications filed with the bankruptcy court.
Following the center’s analysis of 1,075 cases, data showed that 85.4% of applicants were over the age of 50.
By family type, one-person households accounted for the largest share at 58%, up 8 percentage points from a year ago.
By size of debt, the largest proportion of 23.3 percent had debts ranging from 50 million won ($41,880) to 100 million won.
In response to a question asking the reason for their debts, 46% chose an inability to cover living expenses, followed by 21.3% who cited bankruptcy of their business.
Other factors that led to personal bankruptcies included paying off high-interest debt, sudden job loss, and a drop in income due to business failure.
M. H. Lee ([email protected])