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S Koreans face rate cliff as loans rise

Surge in personal loans prompts warnings that bankruptcies will disrupt economy

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IN DEBT: The rise in personal loans comes as official data shows that unemployment among young adults is around 10 per cent, with the percentage of those working in low-wage or irregular jobs near 20 per cent.PHOTO: REUTERS

Seoul

A SURGE in South Koreans taking out non-bank, personal loans has prompted warnings that bankruptcies will disrupt an already slowing economy.

"As the income gap grows, more people will encounter an interest rate cliff," said Cho Nam Hee, president of the Financial Consumer