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Gov't Found to Have Borrowed over 100 Tln Won from BOK This Year

Written: 2023-08-14 08:21:49Updated: 2023-08-14 14:45:25

Gov't Found to Have Borrowed over 100 Tln Won from BOK This Year

Photo : YONHAP News

The government was found to have borrowed more than 100 trillion won from the Bank of Korea(BOK) this year alone after tax revenues fell short of projections due to a slump in the economy and real estate transactions.

The figure was reported by main opposition Democratic Party Rep. Yang Kyung-sook, a member of the National Assembly’s Strategy and Finance Committee, based on materials submitted by the central bank on Monday.

According to the materials, the government was estimated to have borrowed 100-point-eight trillion won, or around 75 billion U.S. dollars, from the BOK between January and June of this year, the most since the digitization of related statistics in 2010.

The government also paid some 114 billion won in interest alone to the BOK on such loans through the end of June to post the largest figure since 2010.

Such loans from the central bank are used to address temporary shortfalls in funds resulting from the difference between tax revenues and expenditures during a fiscal year.

As of the end of July, the government has repaid all the loans.

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