Question 1

How big is South Korea's 2027 budget?

Accepted Answer

South Korea's government proposed total spending of 820.9 trillion won for 2027, 12.8% more than the original 2026 budget of 727.9 trillion won, according to the Ministry of Planning and Budget's 2027 budget proposal, published 1 September 2026 . Total revenue is projected at 880.8 trillion won, up 30.4%, which the ministry attributes mainly to higher corporate and income tax receipts from the semiconductor boom. The proposal goes to the National Assembly, which can amend it before the fiscal year begins in January, so the final budget may differ.

Question 2

Does South Korea have a budget deficit?

Accepted Answer

South Korea's 2027 budget proposal projects a managed fiscal deficit of 3.1 trillion won, or 0.1% of GDP, down from 3.8% of GDP in the 2026 supplementary budget, according to the Ministry of Planning and Budget's 2027 budget press release . The consolidated balance shows a surplus of 59.9 trillion won (1.9% of GDP). The managed balance excludes social security funds, such as the national pension fund, whose surpluses would otherwise flatter the result; the consolidated balance includes them. The ministry's medium-term plan aims to keep the managed deficit around 3% of GDP.

Question 3

What is the outlook for South Korea's government debt?

Accepted Answer

The IMF's October 2026 Fiscal Monitor projects South Korea's general government debt at 46.1% of GDP in 2026, 8.3 points lower than its April forecast, as summarised by the Ministry of Planning and Budget in a note of 14 October 2026 . The IMF projects 51.3% by 2031. The ministry's 2027 budget proposal puts government debt at 48.3% of GDP in 2027, down 3.3 points. The two numbers use different definitions: Korea's national debt covers central and local government, while the IMF's general government measure is broader.

Question 4

What does South Korea's government spend most on?

Accepted Answer

Health, welfare and employment is the largest item in South Korea's 2027 budget proposal at 289.0 trillion won, up 9.3%, according to the Ministry of Planning and Budget's 2027 budget press release . Education follows at 110.7 trillion won and national defence at 73.3 trillion won. Industry, small business and energy rises 29.7% to 41.2 trillion won, research and development 11.2% to 39.5 trillion won and environment 5.2% to 14.6 trillion won. Most education spending is the grant to local education offices, whose link to national tax revenue the proposal reforms for the first time in 55 years.

Question 5

What is South Korea's Future Fund?

Accepted Answer

South Korea's 2027 budget proposal creates a Future Fund with planned revenue of 162.3 trillion won and spending of 45.4 trillion won, according to the Ministry of Planning and Budget's 2027 budget press release . The fund sets aside tax revenue above the 10-year trend line of domestic taxes, calculated over 2015 to 2025 at 6.2% a year. It is meant to pay for investment in youth, growth industries, regions and education rather than one-year consumption, and to act as a buffer when revenue falls. The ministry says government bond issuance for 2027 was reduced to 12.5 trillion won.

Question 6

How much pension do older South Koreans receive?

Accepted Answer

South Koreans aged 65 and over who receive a pension got an average of 737,000 won a month in 2024, 6.0% more than in 2023, according to the Ministry of Data and Statistics' Pension Statistics in 2024 . 91.2% of people in this age group received at least one pension. The figure adds up all pensions a person receives, including the basic pension, the national pension, occupational schemes and private pensions. Men received 957,000 won on average. The statistics count pensions paid as regular annuities.

Question 7

What is South Korea's national debt?

Accepted Answer

According to the IMF, general government gross debt in South Korea was 52.4% of GDP in 2025. It is the top of the series, which starts in 2012. It is 11th highest of 29 in East Asia & Pacific, where the median is 45.0% of GDP. Worldwide: 98th of 185.

Question 8

Does South Korea's government borrow more than it raises?

Accepted Answer

According to the IMF, general government net lending or borrowing in South Korea was -2.3% of GDP in 2025, which is a deficit. Since 2012 it has ranged from -2.6% of GDP (2024) to 2.9% of GDP (2018). East Asia & Pacific median: -1.7% of GDP; South Korea is 17th highest of 29. Of 188 countries with 2025 data, 83rd highest.

Question 9

How much does South Korea's government take in?

Accepted Answer

The IMF puts general government revenue in South Korea at 33.6% of GDP in 2025. Its high point since 2012 was 2022, at 36.2% of GDP; its low point was 2015, at 30.7% of GDP. Across East Asia & Pacific the middle value was 33.6% of GDP, and South Korea placed 15th highest of 29. Of 187 countries with 2025 data, 62nd highest.

Question 10

How much does South Korea's government spend?

Accepted Answer

The latest figure from the IMF, for 2025, is 35.9% of GDP . Its high point since 2012 was 2022, at 36.1% of GDP; its low point was 2018, at 28.6% of GDP. East Asia & Pacific median: 32.9% of GDP; South Korea is 13th highest of 29. Of 186 countries with 2025 data, 69th highest.

Question 11

What is South Korea's tax to GDP ratio?

Accepted Answer

In 2024, central government tax revenue in South Korea was 13.3% of GDP , according to the IMF. Since 2005 it has ranged from 12.5% of GDP (2015) to 17.2% of GDP (2022). It is 10th highest of 12 in East Asia & Pacific, where the median is 15.4% of GDP. Worldwide: 69th of 92.

Question 12

What is South Korea's military budget as a share of GDP?

Accepted Answer

The latest figure from SIPRI, for 2025, is 2.6% of GDP . Since 2005 it has ranged from 2.3% of GDP (2007) to 2.6% of GDP (2020). Across East Asia & Pacific the middle value was 1.4% of GDP, and South Korea placed 2nd highest of 16. World rank, highest first: 34th of 149.

South Korea: public finances