The liabilities of 37 major public institutions are forecast to approach 1,000 trillion won in 2030, the final year of Lee Jae-myung's term. They are set to increase by 219.1 trillion won over four years starting this year, with liabilities at the Korea Land & Housing Corporation (LH) expected to rise by more than 175 trillion won, driving the overall increase.
The Ministry of Economy and Finance on the 1st reported the "2026–2030 mid- to long-term financial management plan for public institutions" at the 10th Public Institutions Management Committee meeting chaired by Second Vice Minister Heo Jang. The plan covers 37 institutions with assets of at least 2 trillion won or with government loss-compensation clauses in their founding statutes. Under the Act on the Management of Public Institutions and the National Finance Act, it is set to be submitted to the National Assembly on the 3rd.
The liabilities of the 37 institutions are projected to grow from 720 trillion won in 2025 to 778.3 trillion won this year, 828 trillion won in 2027, 892.9 trillion won in 2028, and 949.4 trillion won in 2029, reaching 997.4 trillion won in 2030. The liability ratio is also expected to rise by 8.4 percentage points, from 208.2% this year to 216.6% in 2030.
The main driver of the increase in liabilities is the heavier financial burden from LH's expansion of dwelling supply. LH's liabilities are projected to rise from 197.5 trillion won this year to 372.8 trillion won in 2030, up 175.3 trillion won, with its liability ratio increasing from 250.6% to 351.2%. LH plans to sharply expand new dwelling starts and continue programs to purchase both new and existing dwellings for lease.
The liabilities of the remaining 36 institutions are forecast to increase by 43.9 trillion won, from 580.7 trillion won this year to 624.6 trillion won in 2030. Their liability ratio is expected to fall by 20.6 percentage points, from 196.8% to 176.2%.
By sector, liabilities at seven SOC institutions will increase by 190.6 trillion won, from 311.6 trillion won this year to 502.2 trillion won in 2030. Expanded investment driven by changes in project methods, such as LH's direct dwelling construction, had an impact. In energy, liabilities will rise from 299.3 trillion won to 317.3 trillion won due to increased investment in power grids and other areas, but the liability ratio is expected to fall from 509.9% to 381.7% on improved operating profit at Korea Electric Power Corporation and Korea Gas Corporation, among others.
The government plans to prioritize oversight of institutions with weak financial structures or deteriorating profitability and to strengthen evaluations of whether self-rescue efforts are being implemented. It also decided to closely review the appropriateness of investment costs during preliminary feasibility studies for large-scale projects.
Vice Minister Heo said, "As the financial conditions of public institutions are expected to worsen going forward, we will strengthen monitoring of financial risk factors such as exchange rates and oil prices by institution and continuously identify and implement self-rescue efforts."