After 1997 economic crisis, national debt of Korea has increased and will continuously increase in the future. It is becoming more important to manage the national debt since revenue basis is expected to be weakened due to the decline in the growth rate of potential GDP while the factors increasing expenditure will be remained the same including social welfare.

This research analyzes the Government Debt Management Plan firstly submitted to the National Assembly as an annex for the budget proposal by the government at the National Assembly’s request. This research is composed of outline, analysis of current conditions and trend of national debt, effective alternatives of the Government Debt Management Plan, and evaluations of it.

In outline, main contents of the Government Debt Management Plan are examined and summarized. In analysis of current conditions and trend of national debt, the trend of national debt since 1980 and factors which have caused the increase of national debt are analyzed as well as fiscal sustainability. Prior management through maintaining the fiscal soundness is introduced and the government debt management using Asset Liability Management(ALM) is presented as an example in effective alternatives. This research concludes giving the general evaluation of the Government Debt Management Plan 2008.