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

South Korea's tax revenue increased by $19.6 billion in September, driven by higher corporate tax collections from improved earnings in the chipmaking industry, according to data released by the Ministry of Finance and Economy on Friday. The government collected 55.2 trillion won in taxes last month, marking a 26.4 trillion won ($19.6 billion) rise compared to the same period last year.

Corporate tax revenue surged by 23.6 trillion won to 36.2 trillion won, primarily attributed to the improved earnings at chipmakers. Income tax revenue grew by 1.2 trillion won to 9.7 trillion won due to an increase in the number of regular workers and more housing transactions, which boosted capital gains tax collections. Inheritance and gift taxes also saw a notable increase, rising by 200 billion won.

The finance ministry attributes the increase in revenue to a rise in housing gift transactions, which reached 7,000 in June, a 31.2 percent increase from 5,300 a year earlier. Over the January-September period, total tax collections amounted to 385 trillion won, up 95.4 trillion won from the previous year.