President Lee Jae Myung on May 5 shared through his X account a news report saying the country's projected net debt ratio (10.3%) was far lower than the average (89.6%) of member countries of the Group of 20 economies, based on an analysis by the International Monetary Fund Fiscal Monitor. (Screen capture from President Lee's X account)

By Kim Hyelin

President Lee Jae Myung on May 5 reaffirmed his administration's proactive fiscal policy, citing a news report saying the country's projected net debt ratio was far lower than the average of major economies.

On his X account, he said an analysis of the International Monetary Fund (IMF) Fiscal Monitor conducted by the Seoul-based Fiscal Reform Institute found that Korea's projected net debt ratio (10.3%) was a fraction of the G20 average (89.6%).

Quoting part of the institute's study, he said, "If funds raised through government bonds stimulate investment that boosts economic growth and expands social productivity, potential growth and the future revenue base, the national debt ratio could actually stabilize."

The IMF's projected net debt-to-GDP ratio for Korea this year is slightly over 10%. Calculated by subtracting readily convertible financial assets from total government liabilities, this key indicator represents the national debt burden.

The institute also mentioned that the outlook for the country's general government debt ratio jumped 15.3 percentage points from five years ago.

kimhyelin211@korea.kr