debt

Jan. 16 (UPI) — The U.S. Education Department has delayed plans to seize tax refunds and garnish wages over student loans that are in collection, it announced on Friday.

While the delay is in effect, the department will work to revise student loan repayment regulations in accordance with the One Big Beautiful Bill Act.

“The Trump Administration is committed to helping student and parent borrowers resume regular, on-time repayment with more clear and affordable options, which will support a stronger financial future for borrowers and enhance the long-term health of the federal student loan portfolio,” said Nicholas Kent, under secretary of education.

“The department determined that involuntary collection efforts, such as administrative wage garnishment and the Treasury offset program, will function more efficiently and fairly after the Trump administration implements significant improvements to our broken student loan system.”

The halt in collections will help former students and their families, while affordability has become an issue for many across the country, the National Consumer Protection Law Center said.

“Today’s announcement throws a lifeline to working and middle-class families who are buckling under the weight of outdated student loan policies that don’t reflect today’s high cost of living and affordability crisis,” said Abby Shafroth, managing director of advocacy at the National Consumer Protection Law Center.

“The administration must now take the next step and reform harsh collection practices before turning them back on,” Shafroth said.

The One Big Beautiful Bill Act reduced the number of available repayment plans for student loan borrowers and allows for the waiver of unpaid interest for those who make on-time payments.

Pausing the planned tax refund seizures and wage garnishments also gives student loan borrowers another chance to rehabilitate any defaulted loans and resume their normal payments as needed.

Jan. 12 (Asia Today) — The average outstanding loan balance per household borrower in South Korea exceeded 97 million won (about $75,000), the highest since related statistics began in 2012, central bank data showed Monday.

Data submitted by the Bank of Korea to ruling People Power Party lawmaker Park Sung-hoon showed the average loan balance per household borrower stood at 97.21 million won (about $75,000) as of the end of the third quarter of 2025.

The per-borrower figure has risen for nine consecutive quarters since the second quarter of 2023, the data showed. It was up more than 2 million won (about $1,500) from 95.05 million won (about $73,000) a year earlier.

The increase came even as the number of borrowers fell. After edging up to 19.71 million at the end of the first quarter of 2025, the borrower count held steady in the second quarter before slipping to 19.68 million by the end of the third quarter, the lowest level since late 2020, the data showed.

Overall household lending continued to expand. Total household loan balances rose to 1,913 trillion won (about $1.47 trillion) by the end of the third quarter of 2025 after topping 1,900 trillion won (about $1.46 trillion) for the first time in the second quarter, according to the data.

By age group, the average bank loan balance for borrowers in their 40s reached a record 114.67 million won (about $88,000) at the end of the third quarter. Borrowers in their 50s averaged 93.37 million won (about $72,000) and those 30 and under averaged 76.98 million won (about $59,000), both record highs. Borrowers 60 and older averaged 76.75 million won (about $59,000), down slightly from the prior quarter, the data showed.

Average non-bank loan balances were 39.51 million won (about $30,000) for borrowers 30 and under, 48.37 million won (about $37,000) for those in their 40s, 45.15 million won (about $35,000) for those in their 50s and 55.14 million won (about $42,000) for those 60 and older.

Park said household debt burdens are weighing on consumer sentiment, citing constraints on monetary policy amid factors such as a weak won and arguing that the pressure is showing up in softer consumption and sluggish sales among the self-employed. He called for a longer-term strategy to improve financial structure and manage debt risks systematically.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Jan. 9 (Asia Today) — South Korea’s stock market rally is drawing a surge of debt-fueled trading into heavyweight shares such as Samsung Electronics and SK Hynix, both of which have set record highs, as regulators and brokerages warn about overheating risk tied to rising margin balances.

The Korea Financial Investment Association said the nation’s total margin loan balance stood at 28.1903 trillion won (about $19.4 billion) on Thursday, a level the industry often associates with late-stage bull market behavior as leverage expands alongside index gains.

Borrowed funds have been concentrating in top market-cap stocks. Samsung Electronics’ margin loan balance stood at 1.8013 trillion won (about $1.24 billion) on Wednesday, the highest since the data series began, according to the report. During a sharp rally in June 2021, the company’s margin balance was around 700 billion won (about $483 million), it said.

SK Hynix has also seen a steady rise in margin borrowing. Its margin loan balance was 1.1504 trillion won (about $793 million), up from 884.1 billion won (about $610 million) at the end of last year, the report said, adding that the balance has increased for four straight sessions amid the record-high move.

Market watchers said a faster pace of gains can raise the chances of market alert actions. Under Korea Exchange monitoring rules, a stock can be designated an investment warning issue when sharp price rises and unusual trading patterns occur over a defined period, the report said.

The report cited SK Hynix’s experience on Dec. 11 last year, when its shares saw volatility after being designated an investment warning issue. The stock closed at 565,000 won (about $390), down about 3.7% from the prior close of 586,000 won (about $404), it said.

Once a stock is designated an investment warning issue, new margin buying is restricted, the report said, adding that authorities can escalate measures if rapid gains persist, including a trading halt in more severe cases.

The Korea Exchange recently revised its rules to limit the impact of “extremely long-term upward trends” in large-cap stocks, but the report said big semiconductor shares can still face market alert measures if short-term surges or abnormal trading emerge.

Margin trading is drawing attention because it can amplify selling pressure during corrections as forced liquidation accelerates when prices fall, the report said, adding that elevated margin balances in large-cap stocks could heighten future volatility.

A market official cited in the report said improved semiconductor conditions and earnings expectations may support share prices for now, but the pace of leveraged inflows and any regulatory signals will be key variables going forward.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

The move opens key assets to private investment and comes as Petroperu faces mounting losses and debt.

Peru’s government has approved an emergency decree allowing private investment in parts of the state-owned oil company Petroperu, as authorities move to stabilise a firm weighed down by mounting losses and debt.

President Jose Jeri announced the decision shortly before the beginning of the new year.

The measure permits the reorganisation of Petroperu into one or more asset units, opening the door to private participation in key operations. That includes those at the flagship Talara refinery, which recently underwent a $6.5bn upgrade.

Beyond the refinery, Petroperu operates or holds concessions for six crude oil blocks with limited production, alongside a nationwide fuel distribution and marketing network.

In a statement, Peru’s Ministry of Energy and Mines said the decree seeks to “ensure compliance with financial obligations through technical management of its assets, laying the foundation for Petroperu to become a self-sustaining company”.

The ministry said the company’s financial position “is particularly sensitive”, citing accumulated losses of $479m between January and October 2025, as well as debts to suppliers totalling $764m through December.

Those figures come on top of reported losses of $774m in the previous year.

Petroperu’s financial strain has been compounded by debt linked to the Talara refinery modernisation, which ultimately cost double its original estimate and led to the company losing its investment-grade credit rating in 2022.

Since then, the government has repeatedly stepped in to support the firm, providing about $5.3bn in financing between 2022 and 2024.

The company, which is seen as crucial to Peru’s energy security, has also faced environmental scrutiny.

Authorities declared an “environmental emergency” and launched an investigation following an oil spill along a stretch of the country’s northern coastline in 2024, affecting an estimated 47 to 229 hectares (about 116 to 566 acres).

The Petroperu restructuring effort comes amid persistent political instability in Peru. Several presidents have failed to complete full terms in recent years, including Dina Boluarte, who was impeached by Congress in October.

Her successor, Jeri, has struggled to steady leadership at Petroperu, appointing three board chairs in just three months.

The move comes as Peru faces continuing political volatility, economic uncertainty and public pressure for stronger oversight of state institutions.