South Korea debt to rise 121 trillion won yearly, near 60% of GDP

12 Apr 2026, 22:41 · UPI

April 12 (Asia Today) -- South Korea's national debt is projected to rise by an average of 121 trillion won ($90 billion) annually, with the debt-to-GDP ratio expected to approach 60% by 2030, raising concerns over fiscal stability.

According to the government's 2025 fiscal settlement report released Sunday, national debt reached a provisional 1,304.5 trillion won ($970 billion) last year, up 129.4 trillion won ($96 billion) from a year earlier.

National debt refers to liabilities for which the government bears direct repayment responsibility, including central government debt and net local government debt. Final figures will be confirmed after local government accounts are completed in August.

The annual increase represents a growth rate of about 11%, the highest level in four years since 2021, when the rate reached 14.7%. It also marks the third year - following 2020 and 2021 - in which debt rose by more than 100 trillion won in a single year.

As debt expanded, the ratio to gross domestic product also climbed sharply. The debt-to-GDP ratio rose from 46.0% in 2024 to 49.0% last year, an increase of 3 percentage points and the largest jump since 2020, when the COVID-19 pandemic drove a 5.7 percentage point rise.

Government projections suggest that annual increases exceeding 100 trillion won may become routine. Under the national fiscal management plan for 2025 to 2029, submitted to the National Assembly last September, debt is expected to continue rising steadily.

The debt-to-GDP ratio is projected to reach 51.6% this year, 53.8% in 2027, 56.2% in 2028 and 58.0% in 2029, approaching 60% by 2030.

-- Reported by Asia Today; translated by UPI

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260412010003483

South Korea debt to rise 121 trillion won yearly, near 60% of GDP

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