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Young Koreans Without Jobs at 15-Year-High Swells Student Debts

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South Korea is lending record amounts to students and allowing them more scope to delay repayments than in the U.S., risking an explosion in unpaid debts as growth in Asia’s fourth-largest economy slows.

State-owned Korea Student Aid Foundation boosted bond sales to fund loans by 76 percent from a year earlier in the first half, as outstanding student debt in the nation climbed to an unprecedented 12.3 trillion won ($10.5 billion). American students need to start repaying right after graduation, whereas those in Korea can wait until incomes reach a certain level, according to the Korea Institute of Finance.