This Year to See 33 Trillion Won Deficit, Largest since Financial Crisis in 2009

The Hyundai Research Institute said on Feb. 8 that Korea is likely to record a fiscal deficit of at least 33.4 trillion won (US$30.5 billion) this year. 

This is the highest amount since 2009, when the deficits reached 43.2 trillion won (US$39.4 billion) amid the global financial crisis. 

“The ratio of the fiscal deficit to the GDP is below 3 percent, the E.U.’s guideline, for now, but is continuing to go up,” the institute mentioned, adding, “The percentage is expected to more than double from 1.0 percent to 2.1 percent between 2010 and 2014.”

Korea recorded an annual fiscal deficit no less than 24 times between 1990 and 2015. The deficit significantly increased after the global financial crisis, by -3.8 percent to the nominal GDP to be exact, and then temporarily declined. However, the amount has increased again since 2012.