Public sector debt jumps

Debt owed by South Korea’s public sector soared more than 15 percent in 2011 from a year earlier due to increased spending on welfare and infrastructure projects, a government report showed Monday.

According to the report by the finance ministry, 286 public corporation and agencies had a combined debt of 463.5 trillion won ($409.4 billion) as of end-2011, up 15.4 percent from the previous year.

They include state-run enterprises such as Korea Electric Power Corp., Korea Deposit Insurance Corp. and Korea National Oil Corp.

The hike was attributed to expanded welfare outlays, money injected to build rental houses for ordinary families and funds allocated to develop overseas resources. Public companies also invested heavily in energy and transportation infrastructure.

The value of their assets grew 8.4 percent to 698.9 trillion won as of the end of last year, while net profits were in the red by 8.4 trillion won. In 2010, the public companies posted net profits reaching 4.2 trillion won.

The net earnings were due to money lost by KEPCO and KDIC.

Excluding the two corporations, net earnings were in the black by 5.8 trillion won last year.

The report also showed the number of workers employed by the public agencies and corporations stood at 246,000, up 2.7 percent or 6,541 from a year earlier. The increase was helped by 13,986 new hires last year.

Their average annual salaries, meanwhile, grew 3.2 percent to 60 million won, according to the report. 

(Yonhap News)