"Korea's Net Debt Ratio of 10% Is Merely a 'Pension Fund Illusion'" (May 7, 2026)

[Fact Check] "Singing the Austerity Song at Every Turn" Are President Lee's Claims Accurate?

On the afternoon of the 5th, President Lee Jae-myung posted a message on his X (formerly Twitter) account under the title "To the peculiar individuals who sing the austerity song at every turn."

He linked to a press article headlined 'IMF: Korea's Net Debt Ratio 10.3% This Year — 79.3 Percentage Points Below the G20 Average.' The implication was that, given the low government net debt ratio, expanding expenditure to boost growth is preferable to fiscal austerity.

Approximately three hours later, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol posted a concurring message on Facebook.

He wrote that "Korea's situation is sound when viewed through the net debt ratio," adding that it "amounts to only one-eighth of the advanced-country average."

(abridged)

Professor Kim Woo-chul of the University of Seoul (President of the Korean Public Finance Association) points out that, taking into account demographic structure, contingent liabilities of public enterprises, and other diverse criteria, Korea's government debt threshold stands at approximately 62%.

He argues that every effort must be made to keep the debt level below 62%.

He stated: "Claiming among ourselves, domestically, that our debt level is safe carries no meaningful weight."

https://n.news.naver.com/article/023/0003974975?sid=101