South Korea’s consolidated public sector recorded an 83.1 trillion won deficit in 2025, the largest since statistics began in 2007 and 14 trillion won wider than the previous year. Revenue rose 4.7% to 1,192.1 trillion won on stronger corporate and income taxes and social contributions, but expenditure increased 5.5% to 1,275.2 trillion won. Livelihood recovery consumption coupons, welfare stabilization programs, health insurance benefits and public housing investment drove spending. The general government deficit reached 60.1 trillion won, while non-financial public corporations posted a 22.1 trillion won deficit and financial public corporations swung to a 900 billion won deficit. Social security funds remained in surplus at 32 trillion won, although that surplus narrowed. The public-sector deficit equaled 3.1% of nominal GDP, and the Bank of Korea revised the 2024 shortfall to 69.1 trillion won from 48.9 trillion won. The central bank expects semiconductor-related tax revenue and higher social insurance premiums to narrow the deficit in 2026 and potentially restore a surplus in 2027.