Korea's corporate tax revenue to top $149 bil. in 2027 as chip boom lifts profits

Korea's corporate tax revenue is projected to surpass $149 billion in 2027, marking a historic first, as the semiconductor industry experiences a surge in profits. This milestone would also mark the first time since 2012 that corporate tax receipts surpass income taxes, according to government data released on Monday. The substantial increase highlights the country's heavy reliance on semiconductors for both exports and overall economic growth.

This heavy dependence on the chip industry has made government revenue particularly sensitive to fluctuations in the semiconductor cycle, necessitating new fiscal rules to mitigate potential future variations in tax receipts. The Ministry of Finance and Economy anticipates a corporate tax revenue of 216.7 trillion won next year, which is 36.7 trillion won higher than the expected 180 trillion won in income taxes.

The impressive growth is primarily attributed to semiconductor giants such as Samsung Electronics and SK hynix, as the global chip market remains strong. Corporate tax revenue has traditionally been closely aligned with the performance of the semiconductor industry. It has grown from 40 trillion won in previous years, signaling the significant impact of this sector on the country's financial landscape.