Koreas

April 6 (Asia Today) — South Korea’s national debt exceeded 1,300 trillion won ($864.0 billion) for the first time in 2025, while the government posted a managed fiscal deficit above 100 trillion won ($66.3 billion) for a second straight year, according to official data released Monday.

The government’s annual settlement report showed total national debt reached 1,304.5 trillion won ($864.0 billion), up 129.4 trillion won ($85.8 billion) from a year earlier.

The debt-to-GDP ratio rose to 49.0%, up 3.0 percentage points from 46.0% the previous year.

Government debt has risen sharply since the COVID-19 pandemic, increasing by nearly 500 trillion won ($331.5 billion) over the past five years as authorities expanded borrowing to support economic stimulus and welfare spending.

Per capita national debt climbed to about 25.2 million won ($16,700), an increase of about 2.8 million won ($1,900) from a year earlier.

Officials attributed the rise largely to increased government borrowing as tax revenue fell short of spending needs, leading to expanded issuance of treasury bonds.

Central government debt accounted for 1,268.1 trillion won ($840.0 billion) of the total, with most of the increase driven by additional bond issuance. Foreign exchange stabilization bonds also rose as authorities sought to manage currency volatility.

Total revenue and spending were 637.4 trillion won ($422.6 billion) and 684.1 trillion won ($453.6 billion), respectively, resulting in a consolidated fiscal deficit of 46.7 trillion won ($31.0 billion).

The managed fiscal balance, which excludes social security funds and is a key indicator of fiscal health, recorded a deficit of 104.2 trillion won ($69.1 billion). Although slightly lower than the previous year, the deficit remained above the government’s fiscal rule target of 3% of GDP, coming in at 3.9%.

Officials warned that continued fiscal deficits, combined with rising spending pressures linked to global uncertainties including the Middle East conflict, are adding to concerns over the country’s fiscal sustainability.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260406010001683

March 27 (Asia Today) — President Lee Jae-myung said Friday that building a peaceful Korean Peninsula while maintaining a strong defense is the historic mission left behind by South Korea’s fallen West Sea heroes.

Speaking at the 11th West Sea Defense Day ceremony at Daejeon National Cemetery, Lee said the 55 service members honored each year had protected not only a maritime boundary, but also the everyday peace South Koreans enjoy and the future their descendants deserve.

“Our task is to firmly protect our people and the territory of the Republic of Korea with strong national defense capabilities, while also building a peaceful Korean Peninsula free from the worries of war and hostility,” Lee said.

He said the waters defended by the fallen should no longer remain a symbol of conflict, but be turned into “a foundation of peace and prosperity.”

“Peace is our livelihood, and peace is the greatest security,” Lee said. “Winning a fight matters, but winning without fighting matters even more. More important still is a peace in which there is no need to fight.”

Lee said his government would work to end the legacy of confrontation and tension in the West Sea and open a new chapter of shared growth and prosperity.

He also paid tribute to the bereaved families, saying the government would remember the dead, preserve their record and honor them properly.

Lee said his administration was trying to close gaps in veterans support under the principle that special sacrifice deserves special compensation.

Beginning in May, spouses of financially struggling war veterans will receive monthly living support payments, he said.

Lee also said the government plans to expand the number of designated veterans medical institutions nationwide to 2,000 by 2030 so national meritorious persons can receive treatment more easily at nearby hospitals.

He said mandatory military service should be recognized as a legitimate social asset so former service members can take pride in their time in uniform.

To that end, Lee said the public sector will be required to count mandatory service periods when calculating pay grades and wages for discharged veterans.

West Sea Defense Day is a national commemoration honoring those killed in the Second Battle of Yeonpyeong on June 29, 2002, the sinking of the Cheonan on March 26, 2010, and the shelling of Yeonpyeong Island on Nov. 23, 2010.

Before the ceremony, Lee and first lady Kim Hye-kyung paid respects at the graves of those killed in the Second Battle of Yeonpyeong, the Yeonpyeong shelling, the 46 sailors killed in the Cheonan sinking and the late warrant officer Han Ju-ho.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260327010008430

President Donald Trump (R) makes remarks as he stands with Prime Minster Sanae Takaichi of Japan during a dinner in the State Dining Room of the White House in Washington, DC, on Thursday, March 19, 2026. Earlier in the day, the President and Takeuchi exchanged views on Iran, energy, and issues in the Indo-Pacific region. Photo by Aaron Schwartz/UPI | License Photo

March 22 (Asia Today) — South Korea should maintain “strategic ambiguity” in responding to U.S. pressure over the Middle East crisis, experts said, as tensions surrounding Iran and the Strait of Hormuz intensify.

The call comes after Donald Trump urged allies including South Korea, Japan and European partners to play a greater role following U.S. and Israeli strikes on Iran, raising concerns in Seoul about balancing its alliance with Washington and broader diplomatic interests.

South Korean officials said they are taking a cautious approach and have not received formal requests from the United States regarding potential military deployment to the Strait of Hormuz.

The government is focusing on assessing the intent behind Trump’s remarks while weighing the risks of deeper involvement in the region.

The Strait of Hormuz, a critical global energy shipping route, has long been vulnerable to disruption. Analysts say any effort to secure maritime traffic would likely require multinational coordination rather than unilateral action.

Foreign ministers from the Group of Seven nations recently condemned Iran’s attacks on civilian infrastructure and said they are prepared to take steps to support global energy supplies, though the timing of any direct action remains unclear.

A Foreign Ministry official said stability in Middle Eastern shipping lanes is vital for South Korea and other major economies, noting that ensuring safe passage is a challenge that cannot be addressed by a single country.

Experts pointed to Japan’s approach under Sanae Takaichi as a potential model. Tokyo has prioritized its alliance with the United States while limiting direct military involvement, balancing energy security, international law and domestic public opinion.

Lee Ki-tae, a senior researcher at the Sejong Institute, said South Korea should similarly avoid automatic military intervention and instead preserve flexibility.

“Maintaining strategic ambiguity allows South Korea to uphold its alliance while avoiding immediate alignment with any one side,” he said.

Park Won-gon, a professor at Ewha Womans University, said logistical and political constraints also support a cautious stance. He noted that deploying naval forces would require parliamentary approval, a process that could take about two months.

He added that evolving and sometimes inconsistent messaging from Washington further underscores the need for careful deliberation.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260323010006558