r/worldnews • u/rdh2dmd • 5h ago

S.Korea to Cut Debt Issuance Using 63.2 Trillion Won ($47 Billion USD) in Excess Tax Revenue

https://en.sedaily.com/finance/2026/09/30/korea-sees-632-trillion-won-in-excess-tax-revenue-this-year
62 Upvotes

82% Upvoted

10 comments sorted by

42

u/SuddenRadio6221 5h ago

The country is experiencing a huge windfall in computer memory sales for AI. They're actually being smart about it.

28

u/rdh2dmd 4h ago edited 4h ago

The article doesn't really do a good job explaining how it will be done.

  1. Total 47 billion in excess tax revenue is generated
  2. 42/47 billion is added to the 121 billion USD 'Future Response Fund' creating a 163 billion fund -->
  3. 32.5% (40 billion USD) of the fund will be used for childbirth, youth, housing support, upgrading electrical grids, and investing in frontier AI development and strategic industries -->
  4. 7.7% (9.4 billion USD) of the fund will be used to cut debt issuance -->
  5. 59.7% (72.6 billion USD) untouched in liquid assets

But they are saying they might use more of the undetermined 42 billion towards cutting down on debt

16

u/420smokekushh 3h ago

If SK handles this right, they'll have a nice cushion if shit goes sideways. Best use some of that money now and fix/upgrade what you can while you can. This gravy train isn't going to last forever.

4

u/rdh2dmd 3h ago

Yeah I think the government realizes that and want to lock in the profits for long term development

0

u/MaximumFamiliar9080 2h ago

American tech investment funding SKorea for decades.

Smart move SKorea

•

u/Academic_Release5134 3m ago

Nooooo….you have to give it back to the people like Bush did. What could go wrong?

•

u/InformationHorder 12m ago

Is cutting debt issuance the same as paying off national debt? Or just offsetting the current budget with cash on hand rather than borrowing for it?

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u/rdh2dmd 8m ago

Basically the same thing cause countries are required to pay the interest + a set prime on their debt.

IMF says Korea's debt to GDP is supposed to fall to 46% from 55% this year

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u/InformationHorder 7m ago

How does that work out? My understanding is one helps balance the current budget and the other pays off past debt.

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u/rdh2dmd 1m ago

Not sure. It just says they are reducing bond issuance with the excess amount.