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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

April 3 (UPI) — President Donald Trump has requested that Congress increase the Pentagon’s budget by $1.5 trillion for fiscal year 2027 on Friday.

The additional funding the president is asking for is a 40% increase over the current budget. At the same time he is requesting a 10% decrease in all non-defense spending, cutting about $73 billion from domestic programs.

Some of the programs that Trump is proposing to reduce funding to include environmental, renewable energy, transportation and infrastructure programs. About $1.6 billion would be eliminated from National Oceanic and Atmospheric Administration research programs.

The budget request is being led by White House Budget Director Russell Vought, the author of Project 2025.

“The 2027 budget builds on the president’s vision by continuing to constrain non-defense spending and reform the federal government,” Vought wrote in a message to Congress. “A historic paradigm shift in the budget process is occurring and is producing real results for the American public. Fiscal futility is ending. Together, we will achieve significant budgetary savings for the American people while implementing the president’s bold vision.”

The request comes on the heels of Trump’s speech on Wednesday, in which he said the United States cannot “take care of day care, Medicaid, Medicare, all of these individual things.” Instead, the United States must focus on war.

“Don’t send any money for day care, because the United States can’t take care of day care,” Trump said Wednesday. “We’re fighting wars. We can’t take care of day care.”

Fiscal year 2027 begins in October.

The White House published a top-line fact sheet summarizing the request for more defense spending on Friday, along with additional documents highlighting the president’s spending goals. It outlines Trump’s wish to “reinvigorate” the military.

Trump is calling on Republicans in Congress to approve $350 billion in additional funds through reconciliation for obtaining munitions and expanding the defense industry.

By taking $350 billion in additional funding through the budget reconciliation process, Republicans could avoid the Senate filibuster and the need to negotiate with Democrats on Capitol Hill.

Trump is also requesting $40.8 billion in discretionary funding for the Department of Justice, a $4.7 billion increase over its current budget. The White House says this is to continue the Trump administration’s efforts to “stop the migrant crime epidemic.”

Another $1.47 billion is being requested for the Department of Defense to add resources to the southern border, including sensors and surveillance technology.

A SpaceX IPO promises to be one of the biggest Wall Street events of the year, with several investment banks lining up to help raise tens of billions to fund Musk’s ambitions to establish a base on the Moon, place data centres the size of several football pitches into orbit, and possibly one day send a human to Mars.

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The sources spoke on condition of anonymity because they were not authorised to discuss the confidential registration with the Securities and Exchange Commission publicly.

SpaceX did not immediately respond to a request for comment.

Exactly how much SpaceX plans to raise has not been disclosed, but the figure is reportedly as high as $75bn (€65bn). At that level, the offering would easily surpass the $29bn (€25bn) raised by Saudi Aramco in its 2019 IPO.

The offering, which could come as early as June, may value SpaceX at around $1.5 trillion — nearly double its valuation in December, when some minority shareholders sold their stakes, according to research firm PitchBook, prior to an acquisition that increased the company’s size.

Musk currently owns about 42% of SpaceX, according to PitchBook, although that figure will change after the IPO as new shares are issued. In any case, he is likely to surpass the trillion-dollar mark, as he is already close. Forbes estimates Musk’s net worth at roughly $823 billion.

In addition to building reusable rockets to launch astronauts and equipment into orbit, SpaceX owns Starlink, the world’s largest satellite communications company. The company has also recently brought under its umbrella two other Musk businesses: social media platform X (formerly Twitter) and artificial intelligence firm xAI, in a controversial transaction, as both the buyer and seller were controlled by him.

SpaceX has become the leading commercial launch company in its industry, sending payloads into orbit for customers worldwide. However, it has also benefited from significant public funding, raising concerns about potential conflicts of interest, given that Musk was a major donor to President Donald Trump’s campaign and remains a strong supporter.

Over the past five years, SpaceX has secured $6bn (€5.2bn) in contracts from NASA, the Department of Defense and other US government agencies, according to USAspending.gov.

Among current SpaceX investors is Donald Trump Jr, the president’s eldest son, who owns shares through 1789 Capital. The venture capital firm made him a partner shortly after his father won a second term and has since invested in federal contractors seeking government business.

The White House and Trump have repeatedly denied any conflicts of interest between his role as president and his family’s business dealings.