Financial officials urge using surplus tax revenue to tackle inequality

Korea's top financial officials emphasized the importance of utilizing higher-than-anticipated tax revenue to tackle economic inequality by funding initiatives that directly impact people's livelihoods, including housing, employment, and financial assistance for low-income households. During a meeting on macroeconomic issues, Finance Minister Lee Hyoung-il discussed this perspective with Budget Minister Park Hong-geun, Bank of Korea Governor Shin Hyun-song, and Financial Services Commission Chairman Lee Eog-weon, according to the Ministry of Finance and Economy.

The officials made these remarks as Korea's tax revenue is projected to reach a record 478.6 trillion won ($353.7 billion) this year, surpassing the initial budget projection by 88.4 trillion won and exceeding the supplementary budget projection by 63.2 trillion won. The participants stressed that the surplus tax revenue should be allocated strategically, considering the country's economic conditions.

They advocated for spending the additional funds on areas closely tied to people's livelihoods, such as housing, job creation, and financial support for those with lower incomes.