S. Korea's national debts grow on stimulus policies

SEOUL, Jan. 20 (Yonhap) -- South Korea's national debts grew sharply last year from a year earlier mainly due to the government-led expansionary fiscal measures aimed at bolstering the sluggish local economy, preliminary data showed Wednesday.

According to the data offered by the Ministry of Strategy and Finance, the
nation's total debts amounted to around 360 trillion won (US$319.4 billion) last
year, up 51 trillion won from a year earlier. This marked the sharpest on-year
growth on record, it added.
The increase is attributed mostly to the government's efforts last year to
bolster the sluggish economy by pushing to expand fiscal spending, cut taxes and
seek other stimulus measures. Many of the actions were covered by issuing
national debts.
The nation's debts last year nearly quadrupled compared with 1999 when it stood
at 93.6 trillion won. It accounts for around 34 percent of its gross domestic
product, up from 18.6 percent a decade ago.
South Korea's national debts have been on the rise over the past year, the data
showed.
Debts in 2003 stood at 165.7 trillion won but they jumped to 203.1 trillion won
in 2004 and 248 trillion won in 2005 before growing further to 282.8 trillion won
and 298.9 trillion won in the following two years, according to the data.
kokobj@yna.co.kr