National debt tops W600 trillion

By Nam Hyun-woo

Government debt has surpassed 600 trillion won ($540.54 billion) for the first time, growing about 100 trillion won in two years, the finance ministry said Tuesday.

The ministry said the debt stood at 600.3 trillion won at the end of July, up 43.8 trillion from a year earlier.

The debt jumped to 503 trillion won in 2014, three years after it surpassed the 400 trillion won mark. The Ministry of Strategy and Finance expects the debt to be 603 trillion won at the end of the year, as growing tax revenue will slow the pace of debt growth.

Overall government revenue from January to July this year stood at 249 trillion won, while expenditure stood at 241 trillion won, leaving an 8 trillion won surplus.

The government recorded a 9.1 trillion won deficit in the January to July period last year.

Tax revenue stood at 155.4 trillion won, up 20.1 trillion won from a year earlier. The ministry said that last year’s sound corporate performances were reflected in this year’s tax revenue.

“The increased tax revenue led to improvements in the fiscal balance, but expenditure will rise after September as pump-priming policies, including the supplementary budget, are scheduled to end,” a ministry official said.

“Though there were risks, including Brexit, tax revenue is growing, and will likely reach 232.7 trillion won by the end of the year,” he added.