Public Finance of the Republic of Korea 2025

Published on March 31, 2025
Published by Budget Analysis Coordination Division

   This report is designed to support the National Assembly’s deliberation on budgets and settlements. Divided into three parts and 26 chapters, it provides a comprehensive analysis and summary of the nation’s fiscal structure, major fiscal systems, key aspects of the 2025 budget and funds, significant fiscal projects by ministries linked to standing committees, and essential statistics.
   Part 1 offers an overview of Korea’s fiscal structure and major systems, highlighting key aspects of the nation’s fiscal status, including revenues, expenditures, budget balance, and national debt. It also outlines the entire fiscal process, from budget formulation to National Assembly deliberation, execution, and settlement. In addition, it addresses key issues such as the non-allocation of local subsidies and local education subsidies due to tax revenue shortfalls, contribution plans for regional revitalization and population vitality funds to counter local depopulation risks, and recent developments regarding the U.S. federal debt limit. New content for this edition includes a list of projects based on preliminary feasibility study results and a global comparison of R&D budgets.
   Part 2 introduces the highlights of the 2025 budget and fund management plan, along with details of the National Assembly’s deliberation on the 2025 budget proposal and related matters. Part 3 presents an analysis and summary of the fiscal status and major fiscal projects of each ministry linked to the 16 standing committees. In particular, it cites various fiscal statistics that illustrate the impact of these projects on people’s lives, underscores the major fiscal projects by ministry, and outlines their primary functions. Furthermore, it details new fiscal initiatives from the relevant ministries.