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South Korea Posts 102.4 Trillion-Won Jan–Sept Fiscal Gap, Second-Biggest on Record

Heavy execution of two extra budgets outweighed stronger tax receipts.

Overview

  • The Finance Ministry’s November report confirmed a 102.4 trillion-won managed deficit through September, second only to 2020.
  • The consolidated fiscal balance showed a 63.5 trillion-won shortfall as total revenue reached 480.7 trillion won and spending rose to 544.2 trillion won.
  • Two supplementary budgets totaling more than 42 trillion won drove the widening, including 10.3 trillion won for cash assistance and consumption vouchers.
  • Officials expect the shortfall to converge toward about 111.6 trillion won by year-end, noting September’s seasonal weakness typically eases in October.
  • Central government debt stood near 1.26 quadrillion won at end-September, with Treasury issuance at 17.7 trillion won in October and 205.2 trillion won year-to-date, lifting market yields.