South Korea records sixth consecutive public-account deficit, widening to 83.1 trillion won in 2025

Preliminary figures from the Bank of Korea show that South Korea’s public account recorded a deficit for the sixth consecutive year in 2025, expanding to 83.1 trillion won compared with 69.1 trillion won the previous year. The widening gap reflects a 5.5% rise in total public expenditure to 1,275.5 trillion won, outpacing a 4.7% increase in total revenue, which reached 1,192 trillion won. The Bank of Korea attributed the higher outlays mainly to expanded public healthcare costs and larger transfers and subsidies to local governments.

Despite a drop in tax receipts, property income and social contributions grew, partially offsetting the shortfall. South Korea has posted a deficit each year since 2020, highlighting ongoing fiscal pressures.