South Korea’s government debt could surpass 100 percent of its gross domestic product in 2030, hit by a steady increase in welfare spending and rising debts of public companies, a report by the Bank of Korea warned Sunday.

The nation’s public debt rose to a record high of 420.7 trillion won ($368 billion) as of the end of last year, with the ratio of national debt to GDP climbing to 34 percent from 33.4 percent a year ago.

“The ratio of national debt to GDP is expected to remain low until 2015, but there is a possibility that the ratio could surpass 100 percent in 2030 if the current trend of expansion in debt continues,” the Bank of Korea said in the report.

South Korea is one of the world’s fastest aging societies. So, the government’s spending for its social safety net is expected to snowball over the next two decades, the report said.

The rapidly aging society and falling birthrate have raised concerns about the ability of future generations of taxpayers to support the growing ranks of the elderly. (Yonhap News)