South Korea’s Taxpayer-Funded Debt Set to Exceed 1,300 Trillion Won in Four Years

South Korea’s “bad debt,” the portion of government borrowing that taxpayers must ultimately repay, is projected to exceed 1,300 trillion won within four years.

The Ministry of Planning and Budget estimates that deficit-related debt will reach 1,312.3 trillion won in 2030. Next year, it is expected to rise to 1,117.1 trillion won, an increase of 91.9 trillion won, or 9%, from this year’s supplementary budget level.

Deficit-related debt differs from financial debt because it has no assets corresponding to the money borrowed. The government must therefore repay it through tax revenues and other burdens on citizens. An increase in this category means the composition, or quality, of public debt is worsening.

The share of deficit-related debt in total national debt is also expected to increase each year. It stands at 72.6% under this year’s supplementary budget and is projected to reach 75.7% in 2030. The figures were cited as the government presented its 2026-2030 national fiscal management plan on the first of the month.