Overview
- Government data released Sunday show national debt at 1,304.5 trillion won at the end of 2025, up 129.4 trillion won in the year for the biggest jump since records began in 1997.
- The debt-to-GDP ratio rose to 49% last year, up 3 percentage points from 2024, and the finance ministry projects 51.6% in 2026, 53.8% in 2027, 56.2% in 2028, and 58% in 2029.
- The National Assembly approved a 26.2 trillion won supplementary budget, and revised figures now point to a managed deficit of 107.6 trillion won equal to 3.8% of GDP, with 2026 year-end debt estimated at 1,412.8 trillion won and a 50.6% ratio.
- Major forecasters cut growth, with the OECD now at 1.7% for this year and the Bank of Korea governor saying output will fall short of 2%, raising the risk that slower GDP lifts the debt ratio faster.
- The IMF projects around 64% by 2030, a higher path than Seoul’s plan, and this ratio compares government debt with the size of the economy to show how much budget room remains in a downturn.