ID :
52897
Mon, 03/30/2009 - 16:13
Auther :
Shortlink :
https://www.oananews.org//node/52897
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S. Korea`s national debt to grow 19 pct this year
SEOUL, March 30 (Yonhap) -- South Korea's state debt is excepted to jump 19
percent this year as the government issues bonds to fund a large-scale extra
budget aimed at bolstering the slipping economy, officials said Monday.
According to the Ministry of Strategy and Finance, state debt will amount to
366.9 trillion won (US$269.6 billion) this year compared with the previous year's
308.3 trillion won.
This will bring the nation's per-capital debt to 7.53 million won, up from 6.34
million won recorded a year earlier. Debt will account for 38.5 percent of gross
domestic product from 32.5 percent. The government aims to reduce the ratio to 30
percent until 2012.
The increase is attributed mostly to a massive amount of bonds that the
government plans to issue to fund the largest-ever extra budget for this year,
experts say.
Last week, the government endorsed a 28.9-trillion won extra budget. Of it, 17.7
trillion won will be spent to create jobs and support low-income households, with
the remaining 11.2 trillion to be used to make up for expected tax revenue
shortfalls this year.
The budget, equal to 3 percent of gross domestic product, is expected to bring
the nation's total debt issuance for this year to a record 81.6 trillion won.
The move comes as South Korea's economy is slipping into a recession for the
first time in more than a decade, affected by declining demand for its goods at
home and abroad. The economy, Asia's fourth-largest, shrank a revised 5.1 percent
in the fourth quarter from three months ago.
Finance Minister Yoon Jeung-hyun earlier suggested the economy will contract 2
percent this year, a turnaround from a 2.2 percent advance a year earlier. Yoon
forecasts that the extra budget, subject to parliamentary approval, will add to
1.5 percentage points in growth.
South Korea's national debt stood at 93.6 trillion won in 1999 and posted a
slight increase until 2002 when it came to 133.6 trillion won. But the debt
started to grow sharply in recent years before exceeding the 300-trillion mark
last year, according to the ministry.
kokobj@yna.co.kr
(END)
percent this year as the government issues bonds to fund a large-scale extra
budget aimed at bolstering the slipping economy, officials said Monday.
According to the Ministry of Strategy and Finance, state debt will amount to
366.9 trillion won (US$269.6 billion) this year compared with the previous year's
308.3 trillion won.
This will bring the nation's per-capital debt to 7.53 million won, up from 6.34
million won recorded a year earlier. Debt will account for 38.5 percent of gross
domestic product from 32.5 percent. The government aims to reduce the ratio to 30
percent until 2012.
The increase is attributed mostly to a massive amount of bonds that the
government plans to issue to fund the largest-ever extra budget for this year,
experts say.
Last week, the government endorsed a 28.9-trillion won extra budget. Of it, 17.7
trillion won will be spent to create jobs and support low-income households, with
the remaining 11.2 trillion to be used to make up for expected tax revenue
shortfalls this year.
The budget, equal to 3 percent of gross domestic product, is expected to bring
the nation's total debt issuance for this year to a record 81.6 trillion won.
The move comes as South Korea's economy is slipping into a recession for the
first time in more than a decade, affected by declining demand for its goods at
home and abroad. The economy, Asia's fourth-largest, shrank a revised 5.1 percent
in the fourth quarter from three months ago.
Finance Minister Yoon Jeung-hyun earlier suggested the economy will contract 2
percent this year, a turnaround from a 2.2 percent advance a year earlier. Yoon
forecasts that the extra budget, subject to parliamentary approval, will add to
1.5 percentage points in growth.
South Korea's national debt stood at 93.6 trillion won in 1999 and posted a
slight increase until 2002 when it came to 133.6 trillion won. But the debt
started to grow sharply in recent years before exceeding the 300-trillion mark
last year, according to the ministry.
kokobj@yna.co.kr
(END)
