In Seoul, six out of ten residents who filed for personal bankruptcy were aged 60 or older. Including those in their 50s, the share reached 83.1%, indicating that the collapse of income bases in midlife and beyond is leading to bankruptcy.

The Seoul Financial Welfare Counseling Center of the Seoul Welfare Foundation announced on the 10th the results of its analysis of 1,192 valid personal bankruptcy applications received by the center last year.

By age group among middle-aged and older individual filers, those in their 60s accounted for 36.5% (435 cases), the largest share, followed by those in their 50s at 25.1% (299), and those 70 and older at 21.5% (256).

Of the personal bankruptcy applicants, 86.2% were recipients of the Basic Livelihood Security Program. The share of such recipients among personal bankruptcy filings has increased each year, from 83.5% in 2023 to 83.9% in 2024 and 86.2% in 2025.

Single-person households accounted for the largest share at 70.4%.

Currently, 84.6% of applicants were unemployed, and among those in their 60s the unemployment rate rose to 88.2%. Many of the jobs available to those aged 60 and older were also day-labor·short-term positions, and analysis indicated that, in the absence of stable earned income, economic shocks pushed them into bankruptcy.

Most debts (79.5%) arose from insufficient living expenses, and among those 60 and older, housing and medical cost burdens acted in combination in particular.

The average total debt per applicant was $215,250 (287,000,000 KRW), and for those aged 60 and older it was $295,500 (394,000,000 KRW), indicating that the older the cohort, the more debt swelled as interest accrued over long periods without repayment.

Since opening in July 2013, the center has supported the legal discharge of $2,949,000,000 (3,932,000,000,000 KRW) in toxic debt for 14,610 Seoul residents who have filed for personal bankruptcy to date.

Jung Eun-jung, head of the Seoul Financial Welfare Counseling Center, said, “The center plans to strengthen financial welfare for older adults through tailored support programs for financially vulnerable seniors, along with enhancing counseling and welfare services for the financially vulnerable in Seoul,” adding, “We will operate tailored programs that support the swift recovery of older adults affected by financial harm and help their financial self-reliance, working to reinforce the financial safety net and provide practical assistance for a fresh start.”