Korea’s public deficit widens for 6th straight year in 2025: BOK

Korea reported a public account deficit for the sixth straight year in 2025, and the shortfall widened from a year earlier, due to a rise in spending on public health care as well as increased transfers and subsidies to local governments, central bank data showed Friday.

The country's public account shortfall came to 83.1 trillion won ($60 billion) last year, compared to a 69.1 trillion-won deficit logged in 2024, according to the preliminary data from the Bank of Korea (BOK).

The country has logged a deficit since 2020.

The public sector's total spending rose 5.5 percent on year to 1.28 quadrillion won in 2024, while total income climbed 4.7 percent to 1.19 quadrillion won during the same period.

“Despite falling tax revenue, property income receipts and social contributions increased,” the BOK said in a release, adding that the rise in total expenditures was due mainly to social welfare benefits and public spending.

Yonhap