Report warns of S. Korea's debt increase, growth freeze

Fueled by the world's fastest aging population, South Korea's national debt is projected to surge sixfold to 7,000 trillion won ($4.87 trillion), while the country's productivity is expected to nearly stagnate by 2072, according to the National Assembly Budget Office of the country.

The office detailed this grim outlook in its "Long-term Fiscal Outlook Report for 2025-2072", highlighting the significant impact of demographic shifts driven by a rapidly aging population and a declining workforce. The forecast is based on the assumption that existing laws and systems will remain unchanged.

According to the report, by 2050, the national debt is expected to reach a level where the country's production will no longer be sufficient to cover it, with the debt-to-GDP ratio projected to surpass 100 percent. Currently at 48 percent, the ratio is forecast to surge to 173 percent by 2072, meaning the country's debt will be 1.73 times its annual economic output.