Seoul: South Korea's tax revenue has increased by 37.1 trillion won (US$25.3 billion) from a year earlier during the first 10 months of this year due to improved corporate earnings and rising income tax, data showed Friday. The government collected a total of 330.7 trillion won in taxes over the January-October period, reflecting a 12.6 percent rise from the same period last year.

According to Yonhap News Agency, the increase in tax revenue was primarily driven by a significant rise in corporate tax collection, which surged by 22.2 trillion won, reaching a total of 80.4 trillion won. This boost was attributed to stronger earnings reported by local businesses in 2024 and the first half of the current year. The Ministry of Economy and Finance also noted an increase in corporate interest and dividend income, contributing to the rise in tax revenue.

Income tax collection grew by 11.1 trillion won over the cited period, reaching 105.2 trillion won. This increase was fueled by an expansion of performance-based bonuses and a rise in the number of employees. Additionally, a surge in capital gains tax, spurred by the strong performance of overseas stock markets, further bolstered the rise in tax revenue.

The value-added tax also experienced a modest increase, going up by 300 billion won. However, tax revenue from securities transactions saw a decline of 1.6 trillion won, attributed to lower securities transaction tax rates.