Why does Korea expect state-run firms' debt to keep rising through 2030?

The Ministry of Finance and Economy said the firms’ debt will increase under the 2026-30 financial management plan, which includes investment plans for policy projects and self-help measures for each institution. The ministry said public institutions’ financial conditions are expected to deteriorate, so they must manage risks such as exchange rates and oil prices.

How much debt is Korea Land & Housing Corp. projected to have in 2030?

Korea Land & Housing Corp. is projected to raise its debt from 197.5 trillion won to 372.8 trillion won over the period. Its debt-to-equity ratio is also expected to rise from 250.6 percent to 351.2 percent, making it the main driver of the combined increase.

What financial figures did the government project for the 37 state-run firms overall?

The combined debt is expected to rise by 219.1 trillion won to 997.4 trillion won in 2030. The debt-to-equity ratio is projected to rise 8.4 percentage points, from 208.2 percent this year to 216.6 percent in 2030.

Korea projects state-run firms' combined debt to hit $728.6 bil. in 2030

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Summary

The government on Tuesday projected the combined debt of 37 state-run firms to reach 997.4 trillion won in 2030, and said comprehensive efforts are needed to improve their financial health. The Ministry of Finance and Economy said the debt would rise from 778.3 trillion won this year, while the debt-to-equity ratio would climb from 208.2 percent to 216.6 percent. Korea Land & Housing Corp. is expected to drive most of the increase, with debt forecast to jump to 372.8 trillion won. Second Vice Finance Minister Huh Chang urged each institution to monitor risks such as exchange rates and oil prices and keep carrying out self-help measures.

Key Facts

The 2026-30 financial management plan covers 37 state-run firms.
Their combined debt is projected to rise by 219.1 trillion won from 778.3 trillion won this year to 997.4 trillion won in 2030.
The combined debt-to-equity ratio is expected to increase from 208.2 percent to 216.6 percent over the same period.
Korea Land & Housing Corp. is projected to see its debt rise from 197.5 trillion won to 372.8 trillion won.
The agency's debt-to-equity ratio is expected to climb from 250.6 percent to 351.2 percent.

By Yonhap

Published Sep 1, 2026 4:27 pm KST

The government on Tuesday projected the combined debt of state-run firms to reach 997.4 trillion won ($728.6 billion) in 2030, calling for comprehensive efforts to improve their financial health.

The Ministry of Finance and Economy unveiled the projections in its 2026-30 financial management plan for 37 state-run firms.

The plan outlines investment plans for policy projects specific to each institution and self-help measures to improve their financial conditions.

Under the plan, the combined debt of the 37 firms is expected to increase by 219.1 trillion won from 778.3 trillion won this year to 997.4 trillion won in 2030.

Their combined debt-to-equity ratio is expected to rise 8.4 percentage points from 208.2 percent to 216.6 percent over the period.

The increase is expected to be driven mainly by Korea Land & Housing Corp., a state-run housing developer, whose debt is projected to rise from 197.5 trillion won to 372.8 trillion won over the period. Its debt-to-equity ratio is expected to rise from 250.6 percent to 351.2 percent.

"With the financial conditions of public institutions expected to deteriorate, each institution should strengthen its monitoring of financial risk factors, such as exchange rates and oil prices, and continuously identify and implement self-help measures," Second Vice Finance Minister Huh Chang said.

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