Dunamu’s ‘Next Dream’ helps youth overcome debt

A recent report on youth debt by the Seoul Financial Welfare Counseling Center suggests that the average debt per person for 1,499 individuals aged 29 and under who completed the Youth Financial Guide program stood at 71.59 million won ($52,000).

Financial consultants and youth participants share their thoughts in the Dunamu Next Dream performance review meeting. [DUNAMU]

A recent report on youth debt by the Seoul Financial Welfare Counseling Center suggests that the average debt per person for 1,499 individuals aged 29 and under who completed the Youth Financial Guide program stood at 71.59 million won ($52,000).

Of the participants, 17 percent of them reported debt exceeding 100 million won.

Living expenses were cited as the primary source of debt for 59 percent of the respondents, followed by housing costs at 18 percent, fraud victimization at 12 percent and student loans at 10 percent.

The findings indicate that youth poverty is not solely attributable to individual responsibility but to wider societal issues as well.

Young people burdened with debt often find it difficult to receive help from those around them or engage in regular economic activities, often leading to severe depression or social isolation.

Since 2021, Dunamu, Korea’s largest cryptocurrency exchange, has been operating an environmental, social and governance (ESG) management project, the “Dunamu Next Series,” which consists of the “Next Dream,” “Next Steppers” and “Next Job” programs to support such individuals.

Project Next Dream, announced in September 2022, is part of a plan that aims to return transaction fees related to the cryptocurrency Luna.

The project provides assistance in credit recovery and financial independence for young people struggling with debt repayment.

Based on a variety of practical programs such as financial consulting, living expense support and interest-free living expense loans, it contributes to the revitalization of young individuals grappling with debt by bridging the disparities in financial welfare.

In May, Dunamu held the Dunamu Next Dream performance review meeting in Seoul to discuss first-year business operation results and future directions.

Approximately 60 participants, including young people, financial consultants and staff from related organizations attended the meeting.

During this event, the company assessed that through Next Dream, it had brought hope to about 300 young people throughout 2023.

An analysis of financial indicators of participants before and after the program showed significant improvements in their debt burdens.

The average monthly repayment amount decreased from about 2 million won to around 400,000 won for a reduction of approximately 1.6 million won.

The average number of overdue payments dropped from 1.89 to 0.69.

Work and business income, a key prerequisite for stable independence, also demonstrated general growth, with an average annual increase of 780,000 won for those in their twenties and 310,000 won for those in their thirties.

According to an analysis of psychological and social indicators of participants, their outlook on future economic prospects changed for the better.

In response to the question, “How do you view your future economic situation?” the proportion of respondents who answered “hopeful” and “very hopeful” increased by 6.6 percent and 7.4 percent, respectively, compared to before the survey.

Son Eun-jeong, a financial consultant involved in the project said, “Dunamu Next Dream, which pursued every avenue of financial and non-financial support for marginalized youth, has had a significant impact on both financial consultants and the participating youth.”

Lee Dong-yeong, another consultant said, “I witnessed participants who previously lacked clear purpose begin to set new goals and strive to achieve their dreams.”

Young participants of the project also shared their impressions.

An anonymous participant said, “Dunamu Next Dream was like a giving tree, providing meticulous support not only financially but also psychologically.”

They continued, “Being with Dunamu Next Dream for almost a year allowed me to accumulate small but precious experiences in practice and success, and I gained confidence in myself. I am sincerely grateful for this experience as it gave me the strength to start over even though I considered myself a failure.”

Another participant said, “I had lost motivation and meaning in my life as most of my income was used to support my family, but then I learned about Dunamu Next Dream.”

They added, “I feel that not only my economic situation but also my attitude toward the future has gone through a positive transformation. I aspire to take ownership of my life from now on, and to help others who are struggling, thereby creating a virtuous cycle.”

In 2024, Dunamu will continue to focus on the keyword “youth” within its ESG framework, rolling out various initiatives aimed at creating societal value through finance and technology, while nurturing future generations.

In the case of Dunamu Next Dream, the project will expand to include young individuals who have finalized personal recoveries, aiming to assist them in rebuilding their credit and reintegrating into society.

BY JEONG SEONWU [jeong.seonwu@joongang.co.kr]