[ANALYSIS] Discussion on greater support for SMEs deepens fiscal woes Posted : 2021-05-16 16:06 By Lee Kyung-min Korea's fiscal soundness is expected to deteriorate further, following a legislative move seeking greater financial assistance for small- and medium-sized enterprises (SMEs) and across-the-board one-day paid leave for people receiving vaccinations against COVID-19. The Ministry of Economy and Finance says trillions of won needed for each scheme will lead to a significant increase in the country's debt, already on a steep rise over the past year amid expansionary fiscal policies maintained to weather the global health crisis. Another round of debt financing ― the government's issuing of bonds to raise money ― will hike the country's debt-to-GDP ratio to an all-time high of nearly 50 percent this year and further to 60 percent in 2024, putting Korea's long-established track record of fiscal discipline to the test.