IMF: Warn Korean government debt burden: 5000 trillion won in debt
International Monetary Fund (IMF):
IMF expressed concern that the Korean government’s debt burden could explode due to aging.
April 13
Bloomberg
IMF Asia Pacific Bureau:
Andreas Bauer:
South Korea can “endure the increase in debt with the new Corona.”
But,
Due to the rapid decrease in population,
So that the debt burden does not explode
Future spending plans should be carefully considered.
Rapid population decline:
In fact, for the first time in South Korea last year, the number of deaths exceeded the number of births.
“By 2050, 40% of the total population will be 65 or older,” the forecast said.
https://www.wowkorea.jp/news/korea/2021/0414/10295509.html
IMF: “Korea’s National Debt Increase Pace World No. 1”
South Korea’s National Debt Increase:
Last year, the total national debt, including the private sector debt, exceeded 5,000 trillion won (about 486 trillion yen).
The average burden is about 100 million won per person.
International Monetary Fund (IMF) Financial Monitor:
From this year to 2026, the ratio of general government debt to South Korea’s gross domestic product (GDP)
From 53.2% to 69.7%
It is expected to increase by 16.5 points.
South Korea is the worst of the 35 countries
South Korea’s general government debt ratio is the highest of the 35 major countries classified by the IMF.
Estonia (15.7%),
Czech Republic (11.0%), etc.
Countries with smaller economies than South Korea ranked second and third.
35 countries average (-1.4%),
Eurozone average (-6.3%),
The G7 average (-1.5%) was all negative.
Germany and Canada:
Looking at the major advanced economies, Germany and Canada are expected to reduce their debt ratios by 13.2% and 18.2%, respectively.
United States and United Kingdom:
In the US and UK, the debt ratio is expected to increase by only 1.7% and 5.9%.
South Korea’s total debt surges:
Last year, the total debt, which is the sum of national debt and household and corporate debt, was estimated to be 5070 trillion won.
Compared to the previous year (4594 trillion won), it increased by 10.3%.
The total national debt, which was 2859 trillion won in 2011, has increased 1.8 times in nine years.
One citizen’s debt:
Considering that South Korea has a population of 51.78 million by the end of last year,
It means that each person has a debt of 97.91 million won.
Household debt ratio surges:
Household and government debt growth is rapid.
Household debt, which was 968 trillion won in 2010, has more than doubled in 10 years.
The household debt ratio to GDP was 103.8%, exceeding 100% for the first time.
Joongang Ilbo
https://s.japanese.joins.com/JArticle/277576?sectcode=340&servcode=300