Seoul: South Korea's tax revenue increased by 28.6 trillion won (US$20.84 billion) from a year earlier during the first eight months of this year, driven by better corporate earnings and rising income tax, data showed Tuesday. The government collected 260.8 trillion won of taxes over the January-August period, up 12.3 percent from the same period last year, according to the data from the Ministry of Economy and Finance.

According to Yonhap News Agency, the increase was driven by rising corporate tax collection, which gained 17.8 trillion won to 63.4 trillion as local businesses reported stronger earnings in 2024 and the first half of this year. Also attributable was an increase in corporate interest and dividend income.

The amount of income tax collected went up by 9.6 trillion won over the period to 86.7 trillion won on the back of the expansion of performance-based bonuses and an increase in the number of employees. But the amount of value-added tax fell by 1.2 trillion won amid sluggish consumption, while the tax collection from securities transactions dropped by 1.3 trillion won.

In August alone, the country's total tax revenue rose by 4.8 trillion won on-year to 28.2 trillion won, the ministry said.