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Government Spending Up in 2025 to support the consumer.

SOUTH KOREA


  • Expectations for a slowing economy are to be met via increased government spending in 2025 according to the Finance Ministry release today.
  • Spending to reach KRW677.4tn – a 3.2% increase from 2024’s budget.
  • 6.2 trillion won in low-interest loans to companies developing semiconductors, batteries and biotechnology, the Finance Ministry release said.
  • The Bank of Korea forecasts GDP growth to moderate to 2.1% next year from 2.4% this year.
  • South Korea’s debt-to-gross domestic product ratio would edge up to 48.3% next year from 47.4% this year if the budget proposal is approved, according to the Finance Ministry. The government projects this ratio at 50.5% by 2028.
  • South Korea’s benchmark 10-year government bond jumped 6bps in yield this morning to trade at 3.044%

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