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

South Korea's tax revenue is projected to reach a record 478.6 trillion won (US$353.7 billion) in 2026, driven by the semiconductor industry's boom and a bullish stock market, according to government data. This represents an 88.4 trillion won increase from the initial projection for the 2026 budget, which was based on a previous record of 395.9 trillion won in 2022.

The surge in tax revenue is attributed to the semiconductor industry's operating profits, which are expected to be around 70-80% higher than originally projected, and the increased corporate tax revenue, income tax revenue, and securities transaction tax revenue. The surplus tax revenue could potentially fund the government's Future Fund, which aims to channel windfall revenue into sustainable economic growth.

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