South Korean local government debt exceeds 58 trillion won

South Korean local governments face a significant increase in future liabilities, with total debt exceeding 58.4 trillion won. According to an analysis of data from the Ministry of the Interior and Safety by Representative Park Jeong-hyeon, the total amount of debt to be repaid in the future—including long-term borrowings, liquidity-based long-term borrowings, and retirement benefit liabilities—increased by 17.7% (8.7 trillion won) compared to the previous year.

While debt grew rapidly, the assets of these local governments increased by only 2.8%. This widening gap highlights a growing fiscal imbalance. Specifically, Gwangju's debt-to-asset ratio rose by 5 percentage points in one year, reaching 12.40%. In Jeonnam, long-term borrowings more than doubled over a two-year period.

Nationwide, 193 out of 243 local governments reported an increase in debt. Seoul holds the highest total debt at 17.7 trillion won, while Gyeonggi Province maintains the highest debt-to-asset ratio at 14.51%. Representative Park warned that the current structure allows for easy decision-making today while shifting the financial burden to future generations, urging the Ministry to monitor the rate of debt growth relative to asset growth rather than just total amounts.