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Korea's fiscal deficit surpasses 100 trillion won, marking second-largest shortfall on record
This article is by Jeong Jae-hong and read by an artificial voice.
Korea's cumulative fiscal deficit through September had exceeded 100 trillion won ($68.1 billion), the second-largest shortfall on record after 2020, when the government drafted supplementary budgets to counter the Covid-19 pandemic.
According to a report released on Thursday by the Ministry of Economy and Finance, total revenue reached 480.7 trillion won as of September, up 41.4 trillion won from a year earlier. National tax revenue rose to 289.6 trillion won, an increase of 34.3 trillion won, driven by stronger corporate earnings and a broader tax base. Corporate tax receipts jumped 21.4 trillion won, while income tax revenue climbed 10.2 trillion won, buoyed by higher bonuses, rising employment and gains from overseas stock investment.
Non-tax revenue increased 2.2 trillion won to 24.7 trillion won, and fund revenue rose 4.9 trillion won to 166.5 trillion won.
Total expenditures reached 544.2 trillion won over the same period, with 77.4 percent of the second supplementary budget executed. The consolidated fiscal balance - revenue minus expenditures - registered a deficit of 63.5 trillion won. The managed fiscal balance, which excludes the four major social security funds, posted a 102.4-trillion-won deficit, surpassing the 100-trillion-won threshold for the first time since 2020, when the shortfall hit a record 108.4 trillion won.
The deficit widened by roughly 11 trillion won from the 91.5 trillion won shortfall recorded during the same period in 2024, mainly reflecting the impact of spending under the first and second supplementary budgets.
The ministry said fiscal conditions tend to deteriorate temporarily in September due to the absence of major tax payment schedules, adding that improvements are expected to begin in October. It projected that the managed fiscal balance will converge toward the deficit level projected in the year-end budget.
Central government debt stood at 1.26 quadrillion won at the end of September, down 1.9 trillion won from August.
Treasury bond issuance in October totaled 17.7 trillion won. Treasury yields rose from the previous month amid shifting market expectations regarding monetary policy.
From January through October, government bond issuance totaled 205.2 trillion won, or 88.8 percent of the annual limit. During the same period last year, issuance came to 148.5 trillion won, or 93.8 percent of that year's ceiling.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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By Newsroom of the Korea JoongAng DailyThis article is by Jeong Jae-hong and read by an artificial voice.
Korea's cumulative fiscal deficit through September had exceeded 100 trillion won ($68.1 billion), the second-largest shortfall on record after 2020, when the government drafted supplementary budgets to counter the Covid-19 pandemic.
According to a report released on Thursday by the Ministry of Economy and Finance, total revenue reached 480.7 trillion won as of September, up 41.4 trillion won from a year earlier. National tax revenue rose to 289.6 trillion won, an increase of 34.3 trillion won, driven by stronger corporate earnings and a broader tax base. Corporate tax receipts jumped 21.4 trillion won, while income tax revenue climbed 10.2 trillion won, buoyed by higher bonuses, rising employment and gains from overseas stock investment.
Non-tax revenue increased 2.2 trillion won to 24.7 trillion won, and fund revenue rose 4.9 trillion won to 166.5 trillion won.
Total expenditures reached 544.2 trillion won over the same period, with 77.4 percent of the second supplementary budget executed. The consolidated fiscal balance - revenue minus expenditures - registered a deficit of 63.5 trillion won. The managed fiscal balance, which excludes the four major social security funds, posted a 102.4-trillion-won deficit, surpassing the 100-trillion-won threshold for the first time since 2020, when the shortfall hit a record 108.4 trillion won.
The deficit widened by roughly 11 trillion won from the 91.5 trillion won shortfall recorded during the same period in 2024, mainly reflecting the impact of spending under the first and second supplementary budgets.
The ministry said fiscal conditions tend to deteriorate temporarily in September due to the absence of major tax payment schedules, adding that improvements are expected to begin in October. It projected that the managed fiscal balance will converge toward the deficit level projected in the year-end budget.
Central government debt stood at 1.26 quadrillion won at the end of September, down 1.9 trillion won from August.
Treasury bond issuance in October totaled 17.7 trillion won. Treasury yields rose from the previous month amid shifting market expectations regarding monetary policy.
From January through October, government bond issuance totaled 205.2 trillion won, or 88.8 percent of the annual limit. During the same period last year, issuance came to 148.5 trillion won, or 93.8 percent of that year's ceiling.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.