South Korea deficit-increasing debt to reach 1,312 trillion won by 2030

South Korea's deficit-increasing debt is projected to reach 1,312.3 trillion won by 2030, an increase of 287.1 trillion won over the last four years. According to the Ministry of Economy and Finance, this type of debt, which lacks corresponding financial assets and must be repaid through taxation, will account for 75.7% of total national debt by 2030.

As national debt rises, annual interest expenses are expected to climb significantly. From 36.5 trillion won this year, interest payments are forecasted to reach 53.3 trillion won by 2030, exceeding the 50 trillion won threshold. The ratio of interest expenses to GDP is projected to rise from 1.3% to 1.5% during this period.

While the government aims to keep the national debt-to-GDP ratio within 49% by 2030, concerns have been raised regarding fiscal transparency. Projections for deficit-increasing debt, which have been included in official documents since 2006, were notably absent from recent documents submitted to the National Assembly. The Ministry stated this omission was due to a transition to a new reporting format intended to include more international comparisons.