S. Korea's national debt grows by largest-ever $256 mn under Moon government

[Photo by Han Joo-hyung]

South Korea’s national debt stretched by largest-ever under President Moon Jae-in who kept up record-sized fiscal spending to increase welfare benefits and fight Covid-19.

According to data obtained by opposition People Power Party’s lawmaker Her Euna from the National Assembly Research Service on Wednesday, the country’s total liabilities surged to 965.3 trillion won, adding 305.1 trillion won ($256.2 billion) or a record in any five-year presidency.

National debt grew 85.4 trillion won under Kim Dae-jung government, 143.2 trillion won under Roh Moo-hyun government, 180 trillion won under Lee Myung-bak government, and 170.4 trillion won under Park Geun-hye government.

National liabilities per capita also increased by largest-ever 5,773,000 won since Moon took office in May 2017, compared to 1,725,000 won under Kim, 2,837,000 won under Roh, 3,414,000 won under Lee, and 3,141,000 won under Park.

Experts say the continuous expansionary fiscal spending is behind the rapid debt growth.

“Expansionary spending was inevitable under the Covid-19 situation, the rapid debt growth inevitably would weigh on the economy,” said Sung Tae-yoon, a professor of economics at Yonsei University.

“The next government must work harder to contain national liabilities,” emphasized Sung.

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