Tax revenue estimated to hit record high in 2026 on chip boom

Korea's tax revenue is projected to soar to a record 478.6 trillion won ($353.7 billion) in 2026, according to government data released on Wednesday. This represents a staggering increase of 104.7 trillion won compared to the previous year's 373.9 trillion won, as reported by the Ministry of Finance and Economy. The previous record was set in 2022, when tax revenue reached 395.9 trillion won.

The revised estimate is an astonishing 88.4 trillion won higher than the initial projection used to draft the 2026 budget. Finance ministry officials say this significant surge can be attributed to the ongoing semiconductor boom and a robust stock market, both of which were challenging to forecast accurately.

Operating profits in the chip industry are believed to be between 70 and 80 percent higher than what was originally anticipated, according to a finance ministry official. This surge in profits is expected to have a direct impact on corporate tax revenue, which is projected to reach 136.4 trillion won this year, up 51.8 trillion won from the previous year.

Samsung Electronics and SK hynix Inc., two of the world's largest chip manufacturers, are expected to generate a combined operating profit of around 638 trillion won this year. This is a sharp contrast to the 339 trillion won projected for this year.