Management: South Korea plans debt management agency

The South Korea government is considering establishing a national agency specializing in government debt management to improve the national fiscal balance.

The Korea Times reports that the national debt, or financial obligations, amounted to 203.1 trillion won at the end of 2004, up 26.1 percent from the previous year.

Government debt accounted for 26.1 percent of Korea’s gross domestic product (GDP) in 2004, lower than the Organization for Economic Cooperation and Development (OECD) average of 76.4 percent.

Similar debt management agencies operated by the British and Australian governments have helped reduce costs in repaying debt and disperse the risks through efficient debt portfolio management.