Why no one is promising to cut debt

Every South Korean is now born with 23 million won (about $16,800) in national debt. That’s the per-capita figure when the government’s total debt is divided by the number of residents, based on data released in early April. The amount has more than doubled in the past decade.

National debt refers to the obligations that both the central and local governments must repay. In short, it’s debt that future generations will shoulder—and the rate of increase has sharply accelerated since 2020.

The Yoon Suk Yeol administration, which criticized the previous Moon Jae-in administration for reckless fiscal management, has also failed to meaningfully slow the pace. Under Yoon, the national debt has risen by 204 trillion won. While that’s less than during Moon’s tenure, it exceeds the increases under former Presidents Lee Myung-bak and Park Geun-hye. In fact, the three-year rise under Yoon is greater than the five-year increase under Lee and the four-year increase under Park.

Though the Moon government drafted the 2022 budget, Yoon took office in May that year and assumed fiscal responsibility from then on.

Efforts to reduce spending remain difficult. The government is seeking a supplementary budget of 12 trillion won to stimulate sluggish domestic demand. Additional spending will also be required for the upcoming unscheduled presidential election. Once the election ends, major funding will be needed to fulfill campaign pledges.

Opposition leader Lee Jae-myung of the Democratic Party of Korea has pledged to secure at least 50,000 graphics processing units (GPUs), essential for artificial intelligence development. The cost is estimated to exceed 3.5 trillion won. The ruling People Power Party has proposed a series of direct cash support measures for small business owners since February.

Few would object to spending money where it’s needed. But the repeated pattern of spending first without a long-term plan is cause for concern. In the last presidential election, both major parties made sweeping populist promises. One key pledge—to raise monthly pay for rank-and-file soldiers to 2 million won—was implemented. While welcomed by young conscripts, critics said the policy distorted budget priorities, reducing funds for junior officer welfare and high-tech weapons procurement.

Over the next 40 days of the presidential race, voters will hear countless new pledges. But this election must not become a repeat of the last, dominated by populism. Public finances have only worsened. Tax revenues—the lifeblood of the budget—fell short for two consecutive years and remain tight this year.

Candidates must clearly present how they plan to manage the national debt. Even if reducing the overall amount isn’t feasible, slowing the pace of growth is essential. Politics that treat national debt lightly have no future.