Lee: "Final Foreign Exchange Crisis Debt Repaid After 30 Years... Thanks to the People"

Final Repayment of 7.9 Trillion Won in Public Fund Debt Next Year

"The Nation Overcame Its Hardest Moment Thanks to the Strength of the People"

"The People of the Nation Truly Worked Hard"

On September 3, President Lee Jae-myung announced that all government-backed debt incurred to fund financial company restructurings during the 1997 foreign exchange crisis will be fully repaid with next year's budget, remarking, "We are paying off the last of the foreign exchange crisis debt after 30 years."

President Lee Jae-myung is delivering an encouraging speech at the 22nd Overseas Koreans Advisory Council Meeting for the Americas held at Inspire Resort in Yeongjongdo, Incheon, on September 2, 2026. Photo by Yonhap News

In a post published on X (formerly Twitter) that day, President Lee wrote, "The repayment of public funds, which were arranged to prevent a national default during the 1997 IMF foreign exchange crisis, will be completed with next year's budget."

President Lee continued, "Just as we overcame the most difficult times in our country's history about 30 years ago thanks to the strength of the Korean people, we have been able to bring this to a close because of the unwavering efforts of our citizens over the past 30 years." He added, "I will not forget that time," and expressed gratitude by saying, "Thank you to all the people of Korea for your hard work."

The government's 2027 budget proposal, finalized on September 1, includes funding to repay the remaining 7.9226 trillion won in public fund-related debt stemming from financial company restructurings during the foreign exchange crisis. If repayment proceeds as planned next year, the government will conclude the repayment of public fund debts, which began in 2003, after 25 years.

The public funds debt to be settled this time is separate from the IMF bailout loans that were already fully repaid in 2001. This debt was incurred in the process of raising public funds injected to stabilize the financial system, including support for insolvent financial companies and the purchase of non-performing loans during the crisis.

When the government established its public fund repayment plan in 2002, it decided to repay 97.2 trillion won in debt over 25 years. Of this, 69 trillion won—excluding amounts that could be recovered through asset sales—was divided between the government, which shouldered 49 trillion won, and the financial sector, which shouldered 20 trillion won.

According to the National Assembly Budget Office, the balance of debt in the Public Fund Redemption Fund stood at 15.0712 trillion won at the end of last year. After repaying 7.1486 trillion won this year and the remaining 7.9226 trillion won next year, the repayment program will be finished. The Public Fund Redemption Fund is also scheduled to be closed by the end of 2027.

This content was produced with the assistance of AI translation services.