Korea vs Japan — National Debt
Ratio and absolute — two indicators tell different stories.
Japan’s debt-to-GDP (≈260%) is OECD’s highest, but 85%+ is domestically held — FX risk is lower. Korea (≈45%) has a lower ratio but faster growth and higher external share.
| Country / Series | Debt / GDP | Household / GDP | GDP (T USD) | Debt (T USD) | Note |
|---|---|---|---|---|---|
| Korea (D1) | 45.8% | — | 1.92 | 0.88 | D1: central + local gov only |
| Korea (D2, IMF basis) | 56.5% | — | 1.92 | 1.09 | |
| Japan (general gov) | 262.0% | — | 4.25 | 11 | 85%+ domestically held |
Takeaway
Korea "looks better" on the ratio alone, but once external share, interest burden, and demographic drag are factored, both paths are serious.
Sources: BoK ECOS, MoEF Open Fiscal Data, IMF WEO Apr 2025, BoJ debt statistics.