South Korean public institutions face rising debt levels

Public institutions in South Korea are facing significant financial strain due to rising debt levels. In the Gyeongsangnam-do region, public institution debt has reached 1.83 trillion won, the highest in the country. Eleven institutions in the region, including the Gyeongnam Development Corporation, have been designated as debt-intensive management entities. Major contributors to this debt include the Gimhae Daedong Advanced Industrial Complex and the Changwon Self-Sufficient Complex Administrative Town, with the latter's debt rising to 354.3 billion won.

On a national scale, the Korea Expressway Corporation is projecting its debt to grow from 47.85 trillion won this year to over 54.15 trillion won by 2029. This increase is driven by the issuance of corporate bonds to fund highway construction. The corporation faces a difficult financial structure as highway tolls have remained frozen since 2015, while toll exemptions and discounts have increased, accounting for approximately 10% of toll revenue. Consequently, interest expenses are expected to rise significantly, reaching an estimated 1.47 trillion won by 2030.