South Korea's General Government Debt (% of GDP), 1990-2022

South Korea maintained relatively low government debt throughout the 1990s, with levels decreasing to 8.1% in 1996. However, the 1997 Asian financial crisis impacted South Korea’s economy, causing debt levels to rise, although they remained manageable. Through the 2000s, debt-to-GDP ratios saw a gradual increase, with South Korea investing in infrastructure and social programs, reaching 30% in 2009 amid the global financial crisis.

In 2020, the COVID-19 pandemic led to a notable increase in debt, climbing from 42.1% in 2019 to 48.7% in 2020, and reaching 54.3% by 2022. Despite this rise, South Korea’s debt levels remain moderate compared to other developed economies. The government’s focus on sustainable growth and fiscal responsibility positions South Korea with flexibility to support economic resilience while maintaining a manageable debt level.