Seoul faces $161 billion debt maturing over the next three years

The South Korean government has to repay 48 trillion won ($43.7 billion) bonds maturing this year and another 129 trillion won worth over the next two years after it had issued record debts to finance supersized fiscal stimuli to fight Covid-19 pandemic.

According to the Ministry of Economy and Finance data received by Rep. Choo Kyung-ho of the main opposition People Power Party, government debt expiring this year would amount to 48.19 trillion won based on records as of November.

The amount could be smaller after refinancing and buyback.

Dues for next and the following year would be bigger. Debts maturing in 2022 would be a record 61.24 trillion won and another 67.76 trillion won in 2023.

The dues would surge from next year as Seoul this year starts issuing shorter two-year debt to ease the oversupply problem.

Sovereign debt issues jumped to 101.7 trillion won in 2019 from 97.4 trillion won in 2018 and reached 174.5 trillion in 2020.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]