Seoul:South Korea's tax revenue is projected to reach a record 478.6 trillion won (US$353.7 billion) this year, propelled by a surge in the semiconductor industry, as revealed by government data on Wednesday.
According to Yonhap News Agency, this figure represents a substantial increase of 104.7 trillion won from last year's 373.9 trillion won. The previous record was set at 395.9 trillion won in 2022. The revised estimate surpasses the original projection used for the 2026 budget by 88.4 trillion won.
A finance ministry official noted that tax revenue has greatly exceeded initial estimates due to the semiconductor boom and a bullish stock market, which were difficult to foresee. Operating profits in the chip industry were reported to be 70 to 80 percent higher than initially projected.
Corporate tax revenue is anticipated to reach 136.4 trillion won this year, marking an increase of 51.8 trillion won from 2025. The combined operating profit of major industry players, Samsung Electronics Co. and SK hynix Inc., is projected by the market to be around 638 trillion won, up from a February forecast of 339 trillion won.
Income tax revenue is expected to rise to 152.4 trillion won, driven by increased bonus payments at semiconductor and financial companies, surpassing the initial forecast of 132 trillion won. Securities transaction tax revenue is also anticipated to reach 12.4 trillion won, boosted by a strong stock market in the first half of the year, compared to the original estimate of 5.4 trillion won.
Experts suggest that over 200 trillion won could be allocated to the Future Fund, which the government plans to establish next year. This fund aims to leverage the unprecedented tax revenue windfall from the semiconductor boom to foster sustainable economic growth.
The government has highlighted a new concept of "windfall revenue," referring to tax income exceeding long-term trends due to significant economic changes like industrial supercycles. This differs from surplus tax revenue, which occurs when tax receipts surpass forecasts due to unexpected short-term economic shifts or forecasting errors.