South Korea's corporate debt-to-GDP ratio exceeds 1997 currency crisis level

In South Korea, the ratio of corporate debt to GDP (gross domestic product) has been found to exceed the level of the 1997 currency crisis.
According to the Korea Institute of Taxation and Finance's tax and finance briefing, South Korea's tax revenue per GDP is
Philippine corporate debt (excluding the financial sector) reached 113.7% as of 2021, exceeding the 108.6% at the time of the currency crisis.
This is based on statistics from the Bank for International Settlements (BIS), excluding the financial industry.
The analysis was based on the total debt of the Korean government, and is also the highest figure since 1962, when the BIS began compiling statistics for Korea.
"It has increased sharply since before the COVID-19 pandemic, reaching unprecedented levels," he said. "In particular, unlike many G7 countries, where corporate debt levels have declined since 2020,
"Japan is the only country where debt continues to increase," he said. While appropriate debt can have a positive impact on corporate growth, excessive debt increases the risk of corporate default and bankruptcy.
However, recent unprecedented debt ratios warrant particular attention.