The public sector liability ratio last year, the final year of the Yoon Suk-yeol administration, was shown to have declined for the first time in six years. Public sector liabilities combine general government liabilities with those of for-profit public corporations such as Korea Electric Power Corporation. The increase in national debt was smaller than in previous years because the Yoon Suk-yeol administration emphasized sound finances.
According to the Ministry of Economy and Finance on the 11th, last year's public sector liabilities totaled 1,738.6 trillion won, up 3.9% (65.3 trillion won) from a year earlier. The liability-to-GDP ratio fell to 68% from 69.5%. It was the first decline in the liability ratio in six years since 2018. The drop was the largest in seven years since 2017 (-2.5 percentage points).
The decline in the liability ratio reflects a slowdown in the pace of liability growth. The public sector liability increase was 147.3 trillion won in 2021 and 161.4 trillion won in 2022 under the Moon Jae-in administration. In 2023, the increase shrank to 84.6 trillion won, and it narrowed further last year.
Last year, general government liabilities rose by 53.5 trillion won from a year earlier to 1,270.8 trillion won. The liability-to-GDP ratio fell to 49.7% from 50.5%. Nonfinancial public corporations such as Korea Land & Housing Corporation (LH) and Korea Expressway Corporation (KEC) saw liabilities increase by 22.1 trillion won to 567.5 trillion won from a year earlier. The liability-to-GDP ratio edged down to 22.2% from 22.6%.