🇰🇷 South Korea

Public Sector Debt · 2026

Total Debt

71.3%

of GDP

Global Rank

#63

of 192

S&P Rating

Credit rating

SOE Debt

+14.6%

2 categories

Sovereign Wealth

13%

of GDP in SWF assets

5yr Change

+8pp

rising

Where the Debt Sits

Central Government

Central Government: 49.0%Subnational: 7.7%Energy SOEs: 8.2%Infrastructure: 6.4%

Who Holds This Debt

Holder Breakdown

Domestic 90%

Domestic: 90%Foreign: 10%

Currency Denomination

Local 97%

Local currency: 97%Foreign currency: 3%

Full Debt Breakdown

Central Government49.0% of GDP

Central GovernmentIMF WEO — General Government Debt

49.0%

Subnational / Regional7.7% of GDP

SubnationalIMF WEO — General Government Debt

7.7%

Energy SOEs8.2% of GDP

KEPCO (Korea Electric Power)KEPCO 2024 results / Seoul Economic DailyTotal borrowings KRW 205T ($146B). Chronic operating losses from regulated electricity prices.

8.2%

Infrastructure SOEs6.4% of GDP

Korea Land & Housing Corp (LH)Korea Times / IMF Korea Article IVDebt KRW 158T ($113B). Largest public housing developer. Debt growing from 3 new towns project.

6.4%

Total Corporate Debt110.9% of GDP

Nonfinancial corporate debt (total)BIS Credit Statistics Q3 2025KEPCO alone ~6% GDP. Chaebols are private but systemically important.

110.9%

Household Debt89.4% of GDP

Household debtBIS Credit Statistics Q3 2025Very high. Jeonse (deposit-based rental) system unique risk factor.

89.4%

Unfunded Pension Liabilities129.0% of GDP

National Pension unfunded (long-term actuarial)KDI 4th NPS Actuarial Valuation; IMF WP/24/223Fund depletion projected 2054. 2024 reform raised contribution 9%→13%.

102.0%

National Pension unfunded liabilityKDI Korea National Pension Reform 2024NPS unfunded gap: 609 trillion won. Fund depletion projected by 2055 under current rules. If reform delayed to 2029, gap rises to 38.4% of GDP.

27.0%

All Layers Total400.6%