Per Capita National Debt Equivalent to the Price of an Avante... Approaching 28 Million Won in 3 Years

National Debt Surpasses 1,000 Trillion Won for the First Time Last Year
Per Capita Debt Expected to Increase Due to Population Decline

This year, the national debt per resident in South Korea is approaching 22 million won. This amount has more than doubled compared to 2013, ten years ago. Moreover, due to low birth rates and a declining population, it is expected to exceed 25 million won in three years.

According to the government's 2023?2027 National Debt Management Plan and Statistics Korea's future population projections on the 17th, the national debt per resident at the end of this year is 21.89 million won. This represents a 125.4% (12.18 million won) increase from 9.71 million won in 2013.

The per capita national debt is calculated by dividing the government's projected national debt at the end of this year (1,128.8 trillion won) by Statistics Korea's estimated population for this year (51.56 million people).

The national debt was 489.8 trillion won in 2013 but surpassed 1,000 trillion won for the first time last year. In particular, it increased significantly in 2020 (123.4 trillion won, 17.1%) and 2021 (124.1 trillion won, 14.7%) due to responses to COVID-19.

The ratio of national debt to Gross Domestic Product (GDP) rose from 32.6% in 2013 to 49.4% last year, and it is expected to exceed 50% for the first time this year.

[Image source=Yonhap News]

Furthermore, as the national debt continues to increase while the population decreases, the national debt per capita is expected to rise by 5.71 million won (26.1%) over five years, from 21.89 million won this year.

The government projects the national debt to reach 1,196.2 trillion won in 2024, 1,273.3 trillion won in 2025, 1,346.7 trillion won in 2026, and 1,417.6 trillion won in 2027. Accordingly, the national debt-to-GDP ratio is also expected to increase from 51.0% in 2024 to 53.0% in 2027.

On the other hand, due to low birth rates, the population is expected to decline to 51.50 million in 2024, 51.45 million in 2025, 51.40 million in 2026, and 51.35 million in 2027. At this rate, the national debt per capita will surpass 23.23 million won next year, 24.75 million won in 2025, and 26.20 million won in 2026. It will increase to 27.61 million won in 2027.

South Korea's national debt ratio, in the low 50% range, is still relatively moderate compared to advanced countries with ratios between 100% and 200%. However, considering the entrenched low growth of 1?2% and the rapid aging of the population, this situation is concerning. This is why there are calls for the government to establish a future-oriented budget.

This content was produced with the assistance of AI translation services.