Financial Habits and Trends Among Korean Youth: A Closer Look at Income, Spending, and Savings

The Korea Inclusive Finance Agency (KIFA) recently released the results of the 2024 Youth Financial Survey, shedding light on the financial habits and challenges faced by young Koreans aged 19 to 34.

According to the survey, the average annual income of this age group is 30.92 million won ($22,900), with the most common income bracket falling between 24 million and 36 million won. The survey also revealed that the average monthly card expenditure is 1.47 million won, with a majority of respondents spending less than 250,000 won per month.

Interestingly, 44.8 percent of young adults reported having taken out loans, with an average outstanding balance of 37 million won. The average credit score for this group was 806.3 out of a possible 1,000, with the majority falling within the 700 to 900 range.

Despite these financial challenges, 76.5 percent of young respondents said they were saving or investing, with an average monthly amount of 941,000 won. The most commonly held financial products included installment savings accounts, housing subscription savings accounts, and fixed deposits.

However, respondents rated their own financial knowledge and money management skills relatively low, highlighting a need for improved financial literacy among young Koreans. Rising living costs were cited as the most significant financial challenge, followed by securing deposits for housing rentals and mortgage or jeonse loan repayments.

In terms of seeking financial advice, respondents turned to family, online communities, and friends or acquaintances as their primary sources of information. The survey also included data from participants in the Korea Credit Bureau’s MyData project, who had a higher average annual income and monthly card spending compared to the general youth population.

To address the issue of early withdrawals from the Youth Hope Savings Account, KIFA plans to introduce a partial withdrawal service in July. This new service aims to provide young people with access to emergency funds while maintaining their savings plans.

Overall, the 2024 Youth Financial Survey highlights the financial habits, challenges, and aspirations of young Koreans, emphasizing the importance of financial education and planning for the future.
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