Loans

April 21 (Asia Today) — Credit card loans and cash advances in South Korea surged more than 50% in March, signaling growing financial strain among households and raising concerns about rising credit risk in the card industry.

According to data from the Credit Finance Association, card loan usage at nine major credit card companies rose to 11.44 trillion won ($8.4 billion) in March from 7.42 trillion won ($5.4 billion) in February, an increase of about 54%.

Outstanding card loan balances reached 42.99 trillion won ($31.5 billion), up slightly from the previous month and marking a third straight month of increases.

The sharp rise reflects growing demand for short-term, high-interest borrowing as households face persistent inflation and a slowing economy, while tighter bank lending standards push lower-credit borrowers toward credit cards as a last resort.

Industry officials warned the trend could signal deteriorating asset quality, as card loans typically carry higher default risks.

Delinquencies are already rising. Data from the Bank of Korea showed the delinquency rate on credit card loans at commercial banks reached 4.1% at the end of January, the highest level since May 2005.

Loans overdue for more than six months – widely considered difficult to recover – also surged, rising 84% last year to 470.8 billion won ($345 million).

While higher loan volumes can boost interest income, industry officials said the increasing share of low-credit borrowers and longer delinquency periods could weigh on profitability due to higher provisions for bad loans.

Among card issuers, Samsung Card recorded the largest loan volume in March at 2.22 trillion won ($1.6 billion), while Hyundai Card posted the biggest monthly increase.

Cash advance usage also climbed sharply, rising 56% month-over-month to 12.48 trillion won ($9.1 billion), with outstanding balances increasing 4.5% to 6.29 trillion won ($4.6 billion).

A credit card industry official said the combined rise in new borrowing and outstanding balances could become a burden if delinquency rates continue to worsen.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260421010006681

A member of Alabama’s 2009 national championship team has been accused of impersonating NFL players as part of a scheme to fraudulently obtain nearly $20 million in loans to purchase real estate, vehicles and jewelry.

Luther Davis, a Crimson Tide defensive lineman from 2007-10, faces felony counts of conspiracy to commit wire fraud and aggravated identity theft, according to court documents filed last month by the U.S. attorney in the the Northern District of Georgia. An alleged co-conspirator, CJ Evins, also faces the same counts.

The documents mention the initials of three players — X.M, D.N. and M.P. — that were impersonated during the alleged scheme. The Guardian is reporting that those players are Green Bay Packers safety Xavier McKinney, Cleveland Browns tight end David Njoku and Atlanta Falcons quarterback Michael Penix Jr.

Prosecutors in the court filings said the NFL players were not involved in the alleged scheme.

The documents describe an elaborate hoax in which the defendants allegedly created fake companies and fraudulent email accounts and driver’s licenses to help fool lenders into loaning them huge sums of money.

Davis attended virtual loan-closing meetings wearing wigs, makeup and/or a head covering to disguise himself as players seeking loans, according to court documents.

Both men entered pleas of not guilty at their arraignments but have indicated to the court they will enter guilty pleas at hearings set for April 27, according to court records.

In 45 games over four seasons with Alabama, Davis registered 21 solo tackles, 26 assists and eight tackles for loss. A 2013 Yahoo report alleged that Davis broke NCAA rules by paying five prospective draft picks from the Southeastern Conference as an intermediary for sports agents and financial advisers.