As of the end of 2025, Korea’s external debt stood at $766.9 billion, an increase of $94.0 billion compared to the end of the previous year ($672.9 billion). By maturity, short-term external debt (with a maturity of one year or less) rose by $32.5 billion year-on-year to $179.0 billion, while long-term external debt (with a maturity of more than one year) increased by $61.5 billion to $587.8 billion. By sector, external debt increased across all sectors: government (+$46.0 billion), central bank (+$2.4 billion), banks (+$15.5 billion), and other sectors (+$30.1 billion), respectively.
The increase in external debt in 2025 reflects continued capital inflows into Korea, including stronger foreign investment in Korean bonds ahead of their inclusion in the World Government Bond Index (WGBI) in April 2026.
Meanwhile, external claims reached $1,136.8 billion, an increase of $76.8 billion compared to the end of the previous year ($1,060.0 billion).
Net external claims (external claims minus external debt) amounted to $369.9 billion, down $17.2 billion from the end of the previous year ($387.1 billion).
With regard to soundness indicators, the ratio of short-term external debt to total external debt rose from 21.8% at the end of 2024 to 23.3% at the end of 2025, and the ratio of short-term external debt to reserves increased from 35.3% to 41.8% over the same period. Although these indicators edged up from a year earlier, they remain at stable levels. Meanwhile, the foreign currency liquidity coverage ratio (LCR), which indicates domestic banks’ ability to repay external debt, stood at 178.4% as of the end of 2025, significantly exceeding the regulatory requirement of 80%.
The government will make every effort to maintain external stability amid heightened uncertainties in the global environment, including changes in global trade conditions and monetary policy as well as persistent geopolitical risks. At the same time, it will continue to implement policies to promote the foreign exchange and capital markets in a consistent manner so as to support sustained foreign investment inflows into Korea.
