By Cynthia Kim

SEOUL (Reuters). Many South Korean small-business owners recognize themselves as the desperate, cash-strapped protagonists of Netflix’s (NASDAQ:) drama Squid Game. They are competing for $38 million and exposing a debt trap all too familiar.

Yu Hee Sook, 58, is nearing retirement. However, she has paid all her debts off long ago and still receives calls from collection agencies threating to seize her bank account. The loans were securized without her knowing, so Yu Hee-sook was not aware of it.

Yu said that it was like “the end of the universe” in Korea if you are a credit delinquent. Yu worked small jobs such as writing magazine articles for movies during the 13-years it took her to repay the debts she had incurred due to a 2002 movie disaster.

Yu said, “All that I desired was opportunities to repay my debts, but banks don’t allow you to make money.” Yu feels like Yu is trapped in an unforgiving, lifelong struggle, much like 456 contestants on the ‘Squid Game.

Foreigners might associate South Korea’s boyband BTS with sleek Samsung (KS) phones. But the drama shows a darker side to rising personal debt, high suicide rates among advanced countries, and rarity in getting out of debt.

Housing growth and private investment are being fueled by record household borrowing. However, unforgiving social norms regarding debt can blur the lines between personal and business loans. This burdens those in small-scale businesses.

Court filings reveal that personal bankruptcies rose to an all-time high of 50.379 in the last five years.

From 48% in 2017, the Korea Credit Information Services shows that 55.47% had fallen behind on multiple types of personal debt payments.

A lawyer who specializes in personal bankruptcy in Seoul said that Donald Trump could not have been elected president if he was Korean.

In the United States, personal and corporate debt are more distinct.

South Koreans are at risk from a poor social safety net and a program for rehabilitation for failed entrepreneurs. Insolvency records can be destroyed by banks in many cases, which is why they often neglect a five year limit.

Ahn Byungwook, a bankruptcy judge said that South Korean business owners are more likely to take on the burden of debt because they have inherited traditional banking practices.

Banks will often require business owners to act as joint sureties in order for their firm to borrow. Although the practice has been banned by the government for public financial institutions since 2018, three owners confirmed that they still use it.

South Korean state-run financial institutions must guarantee business loan applicants with poor credit or history of default.

Ahn said that failed entrepreneurs have a stigmatization culturally, making it difficult to start over. He has also spent four years working at the Seoul Bankruptcy Court.

“Personal bankruptcy can also lead to restrictions in employment.

The numbers of South Korea’s self-employed rank among the world’s highest, forming a quarter of the job market, making it vulnerable to downturns. In 2017, a central bank survey found that only 38% of these businesses survived three years.

However, South Koreans are losing good jobs, their economic prospects have declined, and many believe speculation is the best way to make money. They take on greater debt to acquire stocks and other assets.

In the June quarter, household borrowing was roughly equal to GDP with a record 1,806 trillion won (1.54 trillion).

Ryu Kwanghan, a 40 year old entrepreneur said “The government encourages startup but they don’t take care for the failed businesses.” Ryu Kwang-han was referring to Ryu Kwanghan who left the debtor rehabilitation program in 2019 and still has difficulty getting loans.

What is the difference between ‘Squid Game” and this if you don’t have second chances?

According to Netflix, the worldwide sensation was viewed by more than 142 million people since Sept. 17, when it launched. That helped Netflix add 4.38 Million subscribers.