South Korea's public sector debt surpassed 1,700 trillion won for the first time at the end of 2024. The Ministry of Economy and Finance reported it reached 1,738.6 trillion won, equivalent to 68 percent of GDP. The rise stems from increased central government bonds and expanded policy projects in non-financial public firms.
South Korea's public sector debt, known as D3, stood at 1,738.6 trillion won by the end of 2024. This marks an increase from 1,673.3 trillion won in 2023 and the highest level since records began in 2011. The Ministry of Economy and Finance stated it equals 68 percent of the country's GDP, down slightly from 69.5 percent the previous year.
The growth arises from rises in general government debt (D2) and debts held by non-financial state-funded firms. D2 reached a record 1,270.8 trillion won in 2024, up from 1,217.3 trillion won in 2023. Its ratio to GDP fell to 49.7 percent from 50.5 percent. The ministry pointed to increased central government bonds and expanded policy projects as key factors.
D3 encompasses debts from central and local governments, nonprofit public institutions, and non-financial public firms. While the debt has hit a new peak, the government notes the GDP ratio remains stable, though ongoing oversight is essential. The figures, announced from the government complex in Sejong, highlight implications for fiscal policy.
