The Total Public debt in South Korea attained a value of USD 976,272.32 million in 2024
The indicator recorded a historical growth (CAGR) of 2.48% between 2021 to 2024, and is expected to grow by...
GlobalData projects the figure to grow at a CAGR of ...
Public Debt:
The term "public debt" refers to a government's promises to make future payments to the owners of its securities, particularly those obligations represented by securities.
The difference between receipts and expenditures represents the net increase in public debt. It is possible to distinguish between internal public debt (debt incurred within the country) and external public debt (funds borrowed from non-Indian sources).
Public Debt: Global Scenario
According to the Institute of International Finance, a global association for the financial industry, the world's debt has reached a record $303 trillion in 2021. The record $226 trillion in global debt reported by the IMF in its Global Debt Database for 2020 has been surpassed by this amount. The IMF claims that since the Second World War, this was the largest one-year increase in debt.
The International Monetary Fund issues a warning about the risky levels of borrowing by governments, households, and businesses. The COVID-19 program sparked borrowing that had previously gone completely unnoticed, and the ongoing Ukraine War is currently driving up global debt even more. Low-income countries and households were most negatively impacted by high debt levels, experts have warned.
The country with the highest public debt in 2021 will be the United States, followed by China, Japan, France, the United Kingdom, Italy, Germany, Canada, and India. Liberia, the Marshall Islands, Micronesia, Tonga, the Republic of Palau, the Solomon Islands, Samoa, Vanuatu, Saint Kitts, and Dominica are the nations with the lowest levels of public debt.
Public Debt in South Korea:
Public Debt in South Korea attained a value of $848 billion in 2021. It recorded a growth of 22.8% in 2021 compared to the previous year. Between 2018-2021, the public debt in South Korea increased by 43.0%. The public debt in South Korea was highest in 2021 with a value of $848 billion and lowest in 2018 with a value of $593 billion between 2018 and 2021.
Factors Affecting the Public Debt:
Residual Gap between Public Revenue and Public Expenditure (Fiscal Deficit): If taxes and other sources of revenue are not enough to cover the costs, the government may resort to borrowing. Public debt may rise because of both internal and external borrowing.
Inflation: In situations where inflation is out of control, the central bank will raise interest rates, which will decrease the amount of money in circulation and reduce demand, thereby bringing inflation under control. Because of this, when interest rates rise because of higher inflation, bond prices fall, and the value of debt funds decreases.
Current Account Deficit: Negative foreign distribution is indicated by current account deficits. Foreign liabilities and debts arise when a country has a current account deficit with the rest of the world. The result is the repayment of priceless foreign exchange reserves. There is a sizeable amount of foreign currency used to pay off these debts.
Growing Unemployment: Unsecured debt rises for each dollar of income lost to unemployment.
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