Public sector debt (CG)▶ Click here for a larger view
Last year, the public sector debt (D3) such as the government and non-financial public companies increased by 55 trillion won, reaching 1100 trillion won for the first time.
The ratio of gross domestic product (GDP) has also risen to the bottom of 60%.
On the 24th, the Ministry of Strategy and Finance released data on the status of ‘2019 general government debt and public sector debt’.
◇ Public sector debt 1,132.6 trillion… Highest growth rate since 2014
Last year’s public sector debt was 133.2 trillion won, an increase of 5.1% (54 trillion won) from a year ago. The growth rate is the highest since 2014 (6.5%) and the increase is the highest since 2014 (58 trillion won).
Public sector debt is the sum of the debts of non-financial public companies such as Korea Electric Power Corporation, Korea Land and Housing Corporation (LH), and Seoul Urban Housing Corporation (SH) to the general government debt, excluding internal transactions such as loans from public enterprises. .
The ratio of public sector debt to GDP was 59.0%, up 2.2 percentage points from the previous year.
In 2016 (-1.0 percentage points), 2017 (-2.6 percentage points), and 2018 (-0.1 percentage points), the decline continued for three consecutive years and turned to an increase, and the rise has been increased since 2013 (2.9 percentage points). The largest.
However, it is the second lowest among the seven OECD countries that calculate public debt after Mexico (47.5%).
In addition, the ratio itself is lower than in 2013 (59.9%), 2014 (60.0%), 2015 (60.5%), and 2016 (59.5%).
The debt of central non-financial public companies such as Korea Expressway Corporation, KEPCO, and power generation subsidiaries increased by KRW 5.99 trillion to 359 trillion KRW, and the debt of local non-financial public companies such as SH increased by KRW 1.87 trillion to KRW 43 trillion.
The Ministry of Science and Technology evaluated that the risk of debt is low in terms of quality as long-term debt (84.2%), fixed interest rate (96.9%), and domestic creditors (86.9%) are high among public sector debt.
◇ 810.7 trillion of general government debt… 42.2% of GDP, 6th out of 33 OECD countries
Last year, general government debt (D2) was 81 trillion won, an increase of 6.7% (51 trillion won) from a year ago. The growth rate is the highest since 2015 (9.0%), and the increase is the highest since 2015 (55 trillion won).
General government debt is the amount of national and local government debt (D1) plus non-profit public agency debt.
The ratio of general government debt to GDP was 42.2%, an increase of 2.2 percentage points from the previous year, the highest ever since statistics were compiled in 2011.
The general government debt ratio reversed the decline for the second consecutive year and turned upward in 2017 (-1.1 percentage points) and 2018 (-0.1 percentage points). The increase has been the largest since 2013 (2.7 percentage points).
The Ministry of Knowledge Economy said, “Unlike 2017 and 2018, when fiscal income conditions were favorable, general government debt increased due to increased government bond issuance due to the realization of inclusive growth and increased expenditure for economic response, while fiscal income conditions deteriorated due to the economic slowdown.” He explained.
However, it is the sixth lowest among 33 OECD countries, after Estonia (13.4%), Luxembourg (30.0%), New Zealand (32.6%), Czech Republic (37.7%), and Switzerland (38.1%). Compared to the 110.0% of the OECD total debt ratio, it is less than half.
Looking at the details, the central government’s accounting and fund debt increased by 55 trillion won to 730 trillion won. The debt of central non-profit public institutions such as the Small and Medium Venture Business Corporation increased 900 billion won to 50 trillion won.
The local government’s accounting and fund debt increased by KRW 2 trillion to 47 trillion KRW, while debt increased in Seoul (2.4 trillion KRW), Incheon (300 billion KRW), and Gyeongbuk (200 billion KRW), and Gyeonggi (-1 trillion 8 trillion KRW). KRW 100 billion) decreased.
Accounting and funding for local education and self-government organizations decreased by 6.82 trillion won to 7.2 trillion won, and the debt of local non-profit public institutions decreased by 100 billion won to 900 billion won.
The Ministry of Knowledge Economy evaluated that the risk of debt is low in terms of quality as the proportion of long-term debt (86.7%), fixed interest rate (97.0%), and domestic creditors (86.7%) is high among general government debt.
The Ministry of Knowledge Economy said, “The debt ratio of Korea last year was good compared to that of major countries.” “Do” he said.
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