The South Korean government has recently unveiled its 2023 budget, which President Yoon Suk-yeol will soon submit to the National Assembly. The country is in an unusual fiscal position compared to the average developed country, with less debt, a smaller government and more net government and public sector wealth. 

But after escaping COVID-19 economic shocks that plagued many other advanced economies, South Korea now faces a far worse fiscal future because of rapid population aging and rising associated costs. This year’s budget represents a 5% increase on the original budget of 2022, but a 6% decrease if supplementary budget appropriations are also included in calculations.