Korea’s bond interest bill to top $38bn by 2030

By Maekyung News Service

South Korea’s government could face 51 trillion won ($38 billion) in interest payments on government bonds by 2030 if debt control efforts fall short.

According to data obtained by Representative Kim Sang-hoon of the People Power Party from the National Assembly’s Strategy and Finance Committee on Sunday, interest payments on government bonds are projected to surge 48.4 percent from 34.42 trillion won this year to 51.09 trillion won in 2030.

Payments are expected to rise to 40.42 trillion won next year, followed by 43.17 trillion won in 2028 and 46.59 trillion won in 2029, increasing by around 3 trillion won to 4 trillion won annually.

The projections exclude principal repayments. The Ministry of Economy and Finance estimates that 406.3 trillion won worth of government bonds will mature between 2027 and 2030.

This has raised concerns that rising interest payments could crowd out public spending on future growth engines and welfare within five years.

The government maintains that the rising interest burden will remain manageable relative to the size of the economy. The Ministry of Planning and Budget said interest payments would account for 1.3 percent of gross domestic product (GDP) in 2026 and around 1.5 percent in 2030.

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