Tax revenue up $19.6 bil. in Sept. amid chip supercycle

South Korea's tax revenue increased by $19.6 billion in September, according to data released by the Ministry of Finance and Economy. The rise was primarily due to higher corporate tax collections, which were fueled by improved earnings at chipmakers during the supercycle. The government collected 55.2 trillion won in taxes that month, marking a notable jump compared to the previous year.

Corporate tax revenue surged 23.6 trillion won to 36.2 trillion won, largely as a result of the improved earnings in the chip sector. Income tax revenue also rose by 1.2 trillion won to 9.7 trillion won, driven by more regular workers and additional housing transactions that led to higher capital gains tax collections. Other significant contributors to the revenue increase included inheritance and gift taxes, which saw a rise of 200 billion won.

The finance ministry cited the increase in housing gift transactions as a key factor, with the number of such transactions reaching 7,000 in June, a 31.2% increase from the previous year. Over the first nine months of the year, total tax collections reached 385 trillion won, a 95.4 trillion won increase compared to the same period a year earlier.