Home

The Korea Herald

Latest news

Most Popular

  1. 1

    Jung's paternity reveal exposes where Korea stands on extramarital babies

    Jung's paternity reveal exposes where Korea stands on extramarital babies
  2. 2

    Samsung entangled in legal risks amid calls for drastic reform

    Samsung entangled in legal risks amid calls for drastic reform
  3. 3

    Heavy snow alerts issued in greater Seoul area, Gangwon Province; over 20 cm of snow seen in Seoul

    Heavy snow alerts issued in greater Seoul area, Gangwon Province; over 20 cm of snow seen in Seoul
  4. 4

    [Herald Interview] 'Trump will use tariffs as first line of defense for American manufacturing'

    [Herald Interview] 'Trump will use tariffs as first line of defense for American manufacturing'
  5. 5

    Agency says Jung Woo-sung unsure on awards attendance after lovechild revelations

    Agency says Jung Woo-sung unsure on awards attendance after lovechild revelations
  1. 6

    [Health and care] Getting cancer young: Why cancer isn’t just an older person’s battle

    [Health and care] Getting cancer young: Why cancer isn’t just an older person’s battle
  2. 7

    Seoul blanketed by heaviest Nov. snow, with more expected

    Seoul blanketed by heaviest Nov. snow, with more expected
  3. 8

    K-pop fandoms wield growing influence over industry decisions

    K-pop fandoms wield growing influence over industry decisions
  4. 9

    [Graphic News] International marriages on rise in Korea

    [Graphic News] International marriages on rise in Korea
  5. 10

    Korea's auto industry braces for Trump’s massive tariffs in Mexico

    Korea's auto industry braces for Trump’s massive tariffs in Mexico
지나쌤

Local governments’ debt snowballs

By Kim Yon-se

Published : Sept. 4, 2012 - 20:44

    • Link copied

The fiscal status of local governments in major provinces has worsened critically as their combined debt has snowballed over the past five years.

When the nation was hit by the 2008 global financial crisis, the central government recklessly used budgets held by local governments for boosting the economy, according to some research analysts.

Local governments expanded their expenditure by issuing local bonds, and as a result, their debt increased by 61 percent from 17.4 trillion won ($15.5 billion) in 2006 to 28.1 trillion won in 2011.

Some analysts warned that Korea could face a Spain-like situation where local autonomous entities are at risk of bankruptcy.

By Kim Yon-se (kys@heraldcorp.com)

More from Headlines