Chip boom set to push Korea's excess tax revenue above $37 billion
Korea is on track to collect more than 50 trillion won ($37 billion) more in tax revenue than projected earlier this year, as robust earnings in the semiconductor sector are set to bolster coffers, according to government insiders Sunday. The excess tax revenue could also substantially increase the resources available for the Future Fund, a new fiscal vehicle included in the government’s 2027…
Korea is projected to generate more than 50 trillion won ($37 billion) in excess tax revenue compared to initial projections released earlier this year, with the surge anticipated to be driven by strong earnings in the semiconductor industry, according to government sources. This surplus could significantly bolster the resources available for the Future Fund, a novel fiscal entity introduced in the government's 2027 budget proposal, potentially surpassing a total of 200 trillion won.
The Ministry of Finance and Economy is set to release an updated forecast of 2026 national tax revenue on Wednesday, alongside its August tax collection figures. The government had previously adjusted its annual tax revenue forecast upwards when it passed the supplementary budget through the National Assembly in April, increasing the estimate by 25.2 trillion won to 415.4 trillion won from the initial 390.2 trillion won budget allocation.
If tax receipts surpass the revised forecast by more than 50 trillion won, the annual national tax revenue would be set to increase to approximately 465.4 trillion won, a figure that would easily surpass the previous record of 395 trillion won.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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