The shortfall rose by 14.0 trillion won from a revised 69.1 trillion won in 2024, marking the largest deficit since public sector-related statistics began in 2007.
The central bank revised the 2024 deficit from a previously reported 48.9 trillion won after incorporating additional settlement data from the government and public corporations, lowering total revenue by 10.9 trillion won and raising expenditure by 9.3 trillion won.
Total public-sector revenue rose 4.7 percent to 1,192.1 trillion won last year, while expenditure increased 5.5 percent to 1,275.2 trillion won. Revenue increased by 53.0 trillion won, compared with a 67.0 trillion won rise in spending.
Tax revenue increased by 45.2 trillion won to 502.0 trillion won and social contributions, including pension and health insurance payments, rose by 11.1 trillion won to 251.5 trillion won, while property-income receipts fell by 5.4 trillion won to 108.4 trillion won.
On the spending side, other current transfers increased by 24.2 trillion won to 144.0 trillion won, partly reflecting livelihood-support consumption vouchers, while final consumption expenditure rose by 21.7 trillion won to 469.2 trillion won. Social benefit payments increased by 15.2 trillion won to 192.6 trillion won and investment rose by 7.7 trillion won to 171.8 trillion won.
The central and local governments including social security funds posted a 60.1 trillion won deficit, widening from 57.5 trillion won a year earlier. Revenue rose by 54.6 trillion won to 903.2 trillion won, while expenditure increased by a larger 57.3 trillion won to 963.3 trillion won.
The central government's deficit widened to 90.1 trillion won from 83.8 trillion won, while the local government's deficit narrowed sharply to 2.0 trillion won from 15.5 trillion won. The surplus at social security funds shrank to 32.0 trillion won from 41.8 trillion won as spending on social benefits increased faster than revenue from social contributions.
Non-financial public corporations posted a 22.1 trillion won deficit, widening from 16.7 trillion won as increased investment in public housing construction, rental-home purchases and urban development outweighed lower raw-material costs.
Their investment spending rose by 6.0 trillion won to 51.6 trillion won, while intermediate consumption, including raw-material and operating costs, fell by 3.3 trillion won to 145.8 trillion won.
Financial public corporations swung to a 0.9 trillion won deficit from a 5.1 trillion won surplus in 2024 as lower interest rates reduced interest income. Their total revenue fell 4.8 percent to 66.3 trillion won, while expenditure rose 4.1 percent to 67.1 trillion won.
The overall public-sector deficit was equivalent to 3.1 percent of nominal gross domestic product, up from 2.7 percent in 2024. Excluding social security funds, the deficit stood at 4.3 percent of GDP.
The government's overall deficit was equivalent to 2.2 percent of GDP in 2025, compared with an OECD average of 4.4 percent and a euro-area average of 2.9 percent.
AJP TAKEAWAYS
- South Korea's public-sector deficit widened to a record 83.1 trillion won in 2025, the largest since the BOK began compiling the accounts in 2007.
- Public-sector revenue rose 4.7 percent, but expenditure grew faster at 5.5 percent, with spending increasing by 67.0 trillion won against a 53.0 trillion won rise in revenue.
- The general-government deficit widened to 60.1 trillion won, while non-financial public corporations posted a 22.1 trillion won shortfall and financial public corporations swung into deficit.
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