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

The government has forecast that the total debt held by state-operated firms in South Korea will reach $728.6 billion by 2030. The Ministry of Finance and Economy disclosed this projection as part of its 2026-2030 financial management plan for 37 state-owned entities. The plan includes investment strategies for each institution as well as internal initiatives aimed at enhancing their financial stability.

According to the plan, the combined debt of these 37 firms is projected to rise from 778.3 trillion won this year to 997.4 trillion won by 2030, marking a 219.1 trillion won increase. Additionally, the debt-to-equity ratio is expected to grow by 8.4 percentage points, from 208.2% to 216.6%. This projected rise in debt is primarily attributed to the Korea Land & Housing Corp., a state-run housing developer whose debt is anticipated to surge from 197.5 trillion won to 372.8 trillion won over the same period.

Consequently, its debt-to-equity ratio is expected to widen from 250.6% to 351.2%. The financial health of public institutions is projected to face considerable challenges in the coming years.