Korea’s Debts at Both Public and Private Levels Hit Record High in 2010

I am concerned that the fiscal and monetary path Korea is on may have a high likelihood of failure over the coming years.

From Yonhap News:

Debts owed by the government, individuals and companies in South Korea reached a record high last year, data showed on Sunday, raising concerns that the high level of debts could derail the economy off the recovery track.

According to data compiled by the Bank of Korea, their interest-bearing debts reached 2,586 trillion won (US$2.37 trillion) at the end of last year, up 7.4 percent from 2,408 trillion won a year ago.

The debts are roughly 2.2 times the country's nominal gross domestic product (GDP), which reached 1,172 trillion won last year, data showed.

By sector, individuals' debts reached 937.2 trillion won at the end of last year, up 8.9 percent from a year ago, and the debts are expected to exceed the 1,000-trillion mark this year.

Public firms owed 254.7 trillion won in debts at the end of last year, and the government has debts totaling 367 trillion won, data showed.

Private companies had the largest amount of debts at 1,281 trillion won, they showed.

http://english.yonhapnews.co.kr/business/2011/04/03/17/0501000000AEN20110403000900320F.HTML