Recently, the Korea Communications Agency (KCA) promoted the reduction in the annual scale of external borrowing for the information and communication technology (ICT) funds as a "liability reduction" achievement. However, the year-end borrowing fund balance of the Broadcasting and Communications Development Fund and the Information and Communication Promotion Fund managed by KCA rose 78.6% over three years to exceed 5 trillion won. Interest costs also increased 73.1% in two years. KCA explained that "liability reduction" refers to a cut in the annual borrowing scale, not a decrease in cumulative borrowing funds. But critics note that, with total borrowing fund balances and interest burdens continuing to rise, highlighting only the fact that the pace of increase has slowed can mislead the public about the funds' actual fiscal condition.
◇ ICT fund borrowing fund balance up 2.2427 trillion won in three years… interest costs 137.8 billion won
On the 29th, an analysis by ChosunBiz of the audit reports for the Broadcasting and Communications Development Fund and the Information and Communication Promotion Fund managed by KCA showed that the combined borrowing fund balance rose from 2.8531 trillion won at the end of 2022 to 5.0958 trillion won at the end of 2025. That is a 78.6% increase over three years. By fund, borrowing funds for the Broadcasting and Communications Development Fund increased 84.1% over the same period, from 999.3 billion won to 1.8399 trillion won. Borrowing funds for the Information and Communication Promotion Fund also rose 75.6%, from 1.8538 trillion won to 3.2559 trillion won.
The two funds are national funds established by the government to support the promotion of broadcasting, communications, and the information and communications industry, as well as related technology development. The more than 5 trillion won in borrowing funds is not a liability on KCA's own accounts, but an accounting liability of the national funds that KCA manages under government entrustment.
The interest burden has also grown. The combined interest costs of the two funds increased from 79.6 billion won in 2023 to 137.8 billion won in 2025. That is an increase of 58.2 billion won, or 73.1%, in two years. The rise in interest costs is the result of a combination of factors, including the expansion of borrowing fund balances and interest rate fluctuations. As the interest burden grows, the fiscal capacity of the funds that can be used for core ICT areas such as AI, software, and information security may be constrained.
◇ Promoted reduced annual borrowing as "liability reduction"… cumulative 5 trillion won balance left out
Yet KCA posted "liability reduction" and "record-high reduction in external borrowing funds" as key achievements on its website. The materials show ICT fund external borrowing funds decreasing from 1.3984 trillion won in 2022 to 885.9 billion won in 2023, 793.3 billion won in 2024, 563.5 billion won in 2025, and 191.8 billion won in 2026. Although the total liabilities kept increasing, the additional borrowing in a given year decreased. Put simply, the debt did not shrink; the speed at which the debt grew merely slowed somewhat. KCA said these figures indicate the "annual borrowing fund scale," not the cumulative borrowing fund balance.
Therefore, a decrease in annual external borrowing funds does not mean total liabilities fell. It means liabilities increased more than the previous year, but by a smaller margin than the year before. Regarding why it did not present the cumulative borrowing fund status alongside the business performance data, KCA said it wanted to emphasize the reduction in annual borrowing scale. It added that cumulative borrowing funds can be found in the external audit reports posted on the KCA website's management disclosure and on Alio, the public institution management information disclosure system.
However, on the business performance screen that general users see, only the decrease in the annual borrowing scale is emphasized, and the fact that cumulative borrowing fund balances surpassed 5 trillion won over the same period is not presented together. Taken alone, the term "liability reduction" could be understood to mean that total liabilities declined.
◇ No concrete plan for principal repayment… 2026 figure is a target, not an actual reduction
The crux of the matter is not the achievement of reducing the annual borrowing scale itself. The question is whether it is appropriate to describe a decrease in the annual increase as "liability reduction" while borrowing fund balances and interest costs continue to rise. To accurately convey liability management performance, it is necessary to present not only the annual new borrowing scale, but also the cumulative borrowing fund balance, principal repayments, and interest costs. Only then can outside observers accurately judge whether the debt is actually shrinking or merely growing more slowly.
KCA did not provide a specific answer on future principal repayment plans or the target timing for turning the borrowing fund balance to a decline. KCA explained that it plans to repay the two funds' external borrowing funds according to their maturities and that the borrowing fund balance fluctuates depending on each fund's revenues and expenditures. It also expressed a general stance that it would actively support the government's policy to reduce borrowing.
As a way to reduce interest costs, KCA said that if the funds secure surplus resources through measures such as lump-sum payment of spectrum reallocation fees, it will prioritize early repayment of borrowing from the Public Capital Management Fund. It also said the competent ministry and fiscal authorities are securing resources needed for core ICT areas through business transfers and reorganizations. However, it did not present in detail the actual record of early repayments, the future annual repayment scale, or how the interest burden has affected individual project budgets.
Meanwhile, the 191.8 billion won in external borrowing funds posted on the KCA website for 2026 was confirmed to be a target, not an actual figure. KCA said, "Under the 2026 plan (the fund management plan finalized by National Assembly deliberation and resolution), external borrowing funds decreased 66% from 2025." Whether it is appropriate to present an annual target that has not yet been executed as if it were an achieved result could also become a point of controversy.