The Ministry of Economy and Finance at Government Complex Sejong / Yonhap

The national debt that the government cannot afford to repay with its current financial resources, and will therefore need to rely entirely on taxpayers' money in the future, is expected to approach nearly 900 trillion won ($670.44 billion) next year, according to the government, Wednesday.

In its 2024-28 fiscal management plan submitted to the National Assembly, the Ministry of Economy and Finance said the debt without payment resources is estimated at 883.4 trillion won in 2025.

This amount represents an increase of 81.4 trillion won, or 10.1 percent, from the estimated 802 trillion won for this year.

The portion of the national debt without available payment resources will also grow, rising from 67.1 percent in 2024 to 69.2 percent in 2025.

"To put it simply, nearly 70 percent of the national debt will require repayment through taxpayers' money," the National Assembly noted.

In financial terms, debt without payment resources differs from debt with payment resources. The former refers to debt that cannot be covered by available funds, while the latter includes debt, such as government bonds, issued to address deficits.

It requires additional tax revenues for financing, thereby placing pressure on the country's fiscal management.

The debt without payment resources has grown significantly over time, surpassing 300 trillion won for the first time in 2015.

The amount saw a double-digit percentage increase during the 2020-22 pandemic era and is expected to surpass the 800 trillion won mark for the first time.

Moreover, the amount is forecast to go above 1,000 trillion won in 2027 to reach 1,024.2 trillion.

The ratio of debt without payment resources to the total national debt has also increased over time, rising from 51.7 percent in 2013 to 60.6 percent in 2020.

The Seoul-based civic group, People's Solidarity for Participatory Democracy, assessed that higher expenditures relative to income "inevitably increases both debt without payment resources and the total national debt."

The group pointed out that the country's fiscal deficit exceeded 100 trillion won in the first half of the year.

This deficit was driven by a decline in corporate taxes, which constitute a significant portion of the government's total tax revenue.

Under these circumstances, the government front-loaded nearly 50 percent of its annual spending in the first six months, while its cumulative revenue decreased by 300 billion won during the same period.

In terms of annual tax collection, the government gathered 344.1 trillion won in 2023, which was 56.4 trillion won below the projected 400.5 trillion won.

Although the 56.4 trillion won shortfall was the largest on record, the government is expected to face another shortfall in tax revenue in 2024, which could reach up to 20 trillion won, depending on economic conditions in the latter half of the year.