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Korea's fiscal deficit hits $33.6 billion in first four months of 2025

Published: 12 Jun. 2025, 11:59 Updated: 12 Jun. 2025, 14:34

Trade containers are stacked at a Busan port on June 11. [NEWS1]

Korea's fiscal deficit reached over 46 trillion won ($33.6 billion) during the first four months of 2025, marking the third-largest shortfall ever recorded for the January-April period, the Ministry of Economy and Finance said Thursday.

The managed fiscal balance, a key gauge of fiscal health calculated on stricter terms, posted a deficit of 46.1 trillion won in the cited period, according to data from the Finance Ministry.

While the figure represents an improvement from the same period last year, which saw a sharp deterioration in fiscal soundness, it remains the third-largest deficit on record for the first four months of the year.

The data does not reflect the supplementary budget passed in May. The ministry cautioned that additional supplementary budgets in the coming months could further widen the fiscal shortfall.

"The deficit figure is based on revenue and expenditures through April," said Hwang Hee-joeng, a ministry official. "We will need to assess tax revenue and spending performance in May to more accurately gauge the full-year fiscal outlook."

Total tax revenue during the January-April period rose 16.6 trillion won on year to 142.2 trillion won. Meanwhile, total expenditures increased by 1.9 trillion won to 262.3 trillion won.

As of the end of April, the central government's debt stood at 1,197.8 trillion won, up 22 trillion won from the previous month.

Yonhap