S. Korea logs public account deficit for 6th consecutive year in 2025: BOK

Seoul, Sept. 18 (Yonhap) -- South Korea's public account deficit reached 83.1 trillion won (US$60.1 billion) in 2025, marking the sixth consecutive year of such a shortfall, according to preliminary data from the Bank of Korea (BOK) released on Friday. The deficit expanded compared to the previous year, when it stood at 69.1 trillion won in 2024.

This increase in the public account deficit was attributed to a rise in spending on public healthcare, as well as higher transfers and subsidies to local governments, according to the BOK's data. The country's total spending on the public sector grew by 5.5 percent year-on-year to 1,275.5 trillion won in 2024, while its total income climbed by 4.7 percent to 1,192 trillion won during the same period.

Despite falling tax revenue and property income receipts, social contributions increased, the BOK noted in a statement. The rise in total expenditures was mainly due to social welfare benefits and public spending, the central bank concluded.