South Korea’s national debt is expected to increase by about 216 trillion won ($206.3 billion) during the five-year term of President Park Geun-hye, data showed Wednesday, underlining growing concerns over mounting debt problems facing the country.
According to the data, South Korea’s national debt is expected to increase to 659.4 trillion won by the end of 2017 from the 443.1 trillion won reported in 2012.
The estimate is based on figures provided by the finance ministry’s 2014-2018 national fiscal management plan. It was presented as part of a questionnaire by Rep. Lee Hahn-koo of the ruling Saenuri Party during a parliamentary audit.
The estimated increase would be much larger than debt expansions recorded under previous governments. Under the immediate predecessor, the Lee Myung-bak government, the national debt grew by 143.9 trillion won.
Experts say the increase in the absolute amount of national debt is inevitable as the country’s overall economic size is getting bigger.
They cite that the real worry is the pace at which the debt is growing, with the increase faster than tax revenue gains and the country’s nominal economic growth. (Yonhap)
