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The debt of 37 major public institutions in South Korea is projected to increase by nearly 220 trillion won over the next four years, approaching 1000 trillion won by 2030. According to the Ministry of Economy and Finance's '2026-2030 Public Institution Long-term Financial Management Plan,' the total debt, which is 778.3 trillion won this year, is expected to rise to 997.4 trillion won by 2030.
In particular, the debt of Korea Land and Housing Corporation (LH) is set to increase by over 175 trillion won, negatively affecting the overall financial stability of the public sector. LH's debt is expected to rise from 197.5 trillion won this year to 372.8 trillion won by 2030, with the debt ratio anticipated to increase from 250.6% to 351.2%. This is due to large-scale investments made for new housing construction and rental projects, which will take a long time to recover funds.
The debt of seven institutions in the SOC sector, including LH, is expected to exceed a total of 190 trillion won. In contrast, the debt of the remaining 36 institutions, excluding LH, is projected to increase by only 43.9 trillion won, resulting in a decrease in the debt ratio from 196.8% to 176.2%. Energy public enterprises such as Korea Electric Power Corporation and Korea Gas Corporation are expected to significantly reduce their debt ratios through improved operating profits and self-rescue efforts.