Korea’s debt to exceed GDP in 2045: Report

[Graphics by Song Ji-yoon]

South Korea’s debt is expected to exceed its gross domestic product (GDP) in 2045, according to a recent report.

According to a report by Bloomberg Intelligence (BI), the Korean government’s debt ratio to GDP will likely reach more than 100 percent in 2045 and 120 percent in 2050. The ratio currently stands at 56.6 percent.

“Rapidly declining birthrates and an aging population will raise social security and healthcare costs, while the working-age population and tax revenues will diminish,” the report said.

It also noted that “the Democratic Party’s recent victory in the April legislative election makes it less likely that tighter fiscal rules proposed by the government will pass the National Assembly.”