The debt owed by major public agencies in South Korea is expected to grow sharply in the years to come, data showed Friday, presenting a daunting task for the public sector to streamline their business in order to tackle the growing debt problem.

According to the data by the finance ministry, the combined debt owed by 41 public agencies, including state-run enterprises, will reach 573 trillion won ($531.8 billion) in 2017, up from 520 trillion won projected for this year. These public agencies’ assets exceed 2 trillion won.

Their debt ratio will also increase from 244.6 percent this year to 248.9 percent next year, the data showed.

Energy-related public agencies will see their debt ratio increase as high as 255 percent in 2015. In particular, the debt ratio for the state-run Korea Electric Power Corp. will jump from 148 percent this year to 172 percent in 2015, the data showed.

The government called for public agencies to ramp up efforts to resolve the debt problem through such ways as curtailing business, selling assets and reducing production costs. 

(Yonhap News)