Contrary to last year's estimate of -3% of GDP by the OECD due to the rapid increase in fiscal deficit, the combined fiscal budget was -3.7%, and the real fiscal deficit was doubled to -5.9%, which was the worst.
As the national debt surged 17% (123.7 trillion won) last year to 846 trillion won, the government put the average of the past 10 years ahead, saying, “The increase rate of government debt is 18.8% on average for 10 years in OECD, but Korea is 10.8%, so the national debt is OECD. It was half of the average,” he said on the 5th, saying, “It is good.”
For fiscal 2020, which was decided at the State Council on the 6th, the national debt (D1) increased to 846 trillion and 9 trillion won, an increase of 123 trillion won (17.1%) from the previous year, and the national debt was 1985 trillion and 300 billion won, compared to the previous year (1743 trillion won). This is a record-high increase of 600 billion won (13.9%).
At a press conference on the 5th, the government said, “IMF has a fiscal deficit of 13.3% of GDP in developed countries, but 3.2% of Korea is good.” Regarding the rate of debt growth, “government debt increased by 6.2%p in 2020, world 14.2%p, developed countries 17.9%p. Increased”, so he said, “Korea is good.”
National debt increased by 14% (241 trillion won) over one year to 1985 trillion won, combined with pension liabilities for civil servants and military personnel, and the government's national debt increased by 17% to 846 trillion won and 965 trillion won next year. And it is an increase of 10% or more in a row.
The OECD said about the Korean fiscal deficit, saying, “The fiscal balance will turn from a surplus of 0.9% of GDP in 2019 to a deficit of 3% of GDP in 2020.” “Government debt rose to more than 48% of GDP in 2023 and then decreased slightly in 2024. It is expected to increase again from afterwards,” he said in the Korea Economic Daily Report in June of last year.
The government's real fiscal management fiscal deficit was 112 trillion won last year, an increase of 57 trillion won from the previous year, the largest since 2011, and is the worst in history at -5.8%, which is 3.0%p worse than the previous year compared to GDP.
Integrated fiscal (total income-total expenditure) surged 592 trillion won from the previous year, with a deficit of 71.2 trillion won, which is -3.7% of GDP, which is 3.1%p worse than the previous year (-0.6%).
"Korea's national debt is still less than half the average of the Organization for Economic Cooperation and Development (OECD)," said Lee Ji-won, head of the Ministry of Finance and Economy, and said, "It is very good even at the rate of debt growth. It said on the 5th, "18.8% for silver and 10.8% for Korea."
In July 2017, the OECD Economic Outlook showed that the ratio of national debt to GDP in 2016 was Korea (44.8%) Japan (230%), the United States (113.6%), France (120.8%), and Germany (78.7%). The financial statements of the Ministry of Equipment (April) were released by lowering 6.9%p ($91.1 billion) to 37.9% of the national debt ratio.
Regarding the gap, the'Seoul Economy' at the time said, "The Ministry of Finance used the national debt (D1) instead of the general government debt (D2), which is an international standard, for the ratio of national debt to GDP." It was announced on the 16th that the general government debt D2, including institutional debt, is the standard for comparing debt between countries.
As of OECD 2017, the national debt of 2016 was 44.8% of GDP, and the increase in debt ratio (1.1%) was lower than that of Japan (4.0%) the United States (2.5%) and the United Kingdom (1.5%), but Germany (-3.6%) and France ( It was higher than 0.4%).