S. Korea projects state-run firms' combined debt to hit 997.4 tln won in 2030

SEOUL, September 1 (Yonhap) -- The South Korean government has forecast the combined debt of state-run corporations to rise to 997.4 trillion won, or US$728.6 billion, by 2030, urging urgent measures to enhance their financial stability. The Ministry of Finance and Economy disclosed these projections in its 2026-2030 financial management plan for 37 state-owned enterprises.

The plan details investment strategies for each entity's policy projects and suggests self-improvement steps to bolster their fiscal health. According to the plan, the total debt of these 37 firms is set to climb 219.1 trillion won, from 778.3 trillion won in 2021, to reach 997.4 trillion won by 2030. The debt-to-equity ratio is anticipated to climb 8.4 percentage points from 208.2% to 216.6% during this period.

This projected surge is primarily attributed to Korea Land & Housing Corp., a state-run housing developer, whose debt is forecasted to soar from 197.5 trillion won to 372.8 trillion won, with its debt-to-equity ratio climbing from 250.6% to 351.2%. As public institutions' financial conditions are expected to worsen, each firm must intensify its monitoring of financial risk elements like exchange rates and oil prices, and persistently identify and implement self-improvement measures, said Second Vice Finance Minister Huh Chang.