S. Korea's national debt rise sharpest among OECD members
SEOUL, Aug. 25 (Yonhap) -- South Korea's national debt has risen the sharpest among members of the Organization for Economic Cooperation and Development (OECD), a private think tank said Thursday.
The Center for Free Enterprise (CFE) said based on data it has analyzed, the country's debt stood at US$296.2 billion in 2009, up a staggering 399.1 percent from $59.3 billion tallied in 1998.
It said this is by far the sharpest gain among the 20 OECD countries it checked during the 10-year period.
Runner-up Greece, which has experienced fiscal difficulties, reported debt rising 190.3 percent in the cited period, with numbers for Portugal and Germany rising 180.9 percent and 153.6 percent, respectively.
The CFE said that while South Korea's national debt has risen at a faster pace than other OECD members, its overall size remains relatively small compared to the country's gross domestic product (GDP).
The size of the national debt compared to GDP stood at 33.8 percent in 2009, the report showed.
The think tank, however, said that with economic growth slowing down in recent years and state spending growth exceeding gains in the overall economy, there is need for caution.
"Countries with higher national sovereign ratings and larger economies are struggling with national debt issues, so South Korea, too, needs to be careful about overextending itself," the think tank said.
In particular, it stressed that the policymaker should refrain from making policy pledges that will tax the government's payment ability. (Yonhap)
The Center for Free Enterprise (CFE) said based on data it has analyzed, the country's debt stood at US$296.2 billion in 2009, up a staggering 399.1 percent from $59.3 billion tallied in 1998.
It said this is by far the sharpest gain among the 20 OECD countries it checked during the 10-year period.
Runner-up Greece, which has experienced fiscal difficulties, reported debt rising 190.3 percent in the cited period, with numbers for Portugal and Germany rising 180.9 percent and 153.6 percent, respectively.
The CFE said that while South Korea's national debt has risen at a faster pace than other OECD members, its overall size remains relatively small compared to the country's gross domestic product (GDP).
The size of the national debt compared to GDP stood at 33.8 percent in 2009, the report showed.
The think tank, however, said that with economic growth slowing down in recent years and state spending growth exceeding gains in the overall economy, there is need for caution.
"Countries with higher national sovereign ratings and larger economies are struggling with national debt issues, so South Korea, too, needs to be careful about overextending itself," the think tank said.
In particular, it stressed that the policymaker should refrain from making policy pledges that will tax the government's payment ability. (Yonhap)
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