◀ Anchor ▶
Self-employed people continue to face crises after the coronavirus, but they say it is more difficult now than during the coronavirus.
In particular, low-interest loans received during the coronavirus outbreak are now returning with skyrocketing interest rates, making it difficult to repay debt.
This is reporter Jeong Hye-in.
◀ Report ▶
Cheoljin Kim has run a Chinese restaurant in Gangbuk for 25 years.
We once had over 10 employees, but have now let most of them go.
The remaining work is handled by Mr. Kim and his son.
[김철진/25년째 중국집 운영]
“Let’s all get on our feet and support ourselves to some extent. So today is also a day off…”
Recently, the prices of black bean noodles and sweet and sour pork were lowered by 1,000 to 2,000 won to accommodate at least one more customer.
[김철진/25년째 중국집 운영]
“Discounts like this… we have to do this to lead the way. Otherwise, we have to close the business.”
What is putting more pressure on Mr. Kim’s shoulders is ‘debt’.
After the coronavirus outbreak, five loans were added one by one. At the time, the lowest interest rate was around 1%, but now it has risen to a maximum of 5%.
It costs 3 million won each month to pay off the debt.
As of the second quarter of this year, the number of self-employed people with low income and low credit who are ‘multiple borrowers’ like Kim who received loans from more than three financial institutions reaches 410,000.
It is 1.7 times the level in the first quarter of 2020 when the COVID-19 pandemic began.
One in 10 of these ‘vulnerable self-employed people’ are unable to repay their debt with the money they earn.
[스포츠용품 판매업자 (음성변조)]
“I think (the interest rate) has risen 2-3 times. Compared to the Corona period. I have to pay back the principal, and I can’t do business… I’ve given up.”
The choice to survive on loans while cooperating with national quarantine efforts during the coronavirus pandemic has come back as another pain.
Experts point out that selective support should be continued based on income and credit rating and that vulnerable self-employed people need active debt restructuring.
This is Jeong Hye-in from MBC News.
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