The Bank of Korea published preliminary public sector accounts for 2025, showing that the deficit widened to KRW 83.1 trillion from KRW 69.1 trillion in 2024. Total expenditure rose 5.5% to KRW 1,275.2 trillion, outpacing a 4.7% increase in total revenue to KRW 1,192.1 trillion. Higher social welfare spending and economic stimulus transfers drove general government expenditure, while investment in public housing and purchased rental housing increased spending by nonfinancial public corporations. General government revenue benefited from higher tax receipts, and nonfinancial public corporations recorded stronger sales revenue following higher electricity tariffs and the normalization of services at national and public hospitals. Revenue at financial public corporations declined because of lower interest receipts.
2026-09-18Bank of Korea
Bank of Korea reports public sector deficit widened to KRW 83.1 trillion in 2025
The Bank of Korea reported that the public sector deficit widened to KRW 83.1 trillion in 2025 from KRW 69.1 trillion a year earlier. Expenditure increased 5.5% to KRW 1,275.2 trillion, exceeding the 4.7% rise in revenue to KRW 1,192.1 trillion.