(LEAD) S. Korea's fiscal balance improves through Sept.: budget ministry

The fiscal balance of South Korea improved significantly in the first nine months of 2026 compared to the same period in 2025, according to a report from the budget ministry. With the managed fiscal balance, which adheres to stricter criteria, showing a deficit of 32 trillion won ($23.9 billion) at the end of September, there was a notable decrease of 70.5 trillion won from the previous year's deficit at the same time.

This improvement was driven by a surge in tax revenue, which increased by 95.4 trillion won to reach 385 trillion won during the January-September period of 2026, a substantial rise from 289.6 trillion won in the same period in 2025. The increase was primarily due to corporate tax revenue, which rose by 51.9 trillion won to 309.9 trillion won, propelled by robust earnings of domestic companies.

Income tax revenue also saw a substantial increase of 15.7 trillion won, influenced by bonuses and higher housing transactions. Non-tax revenue and fund revenue saw modest increases of 9.3 trillion won and 19.9 trillion won, respectively. Despite the overall increase in government expenditures to 584.9 trillion won during this period, which represents a 40.7 trillion won rise from the same period in 2025, the fiscal balance remained healthier due to the significant boost in tax revenue.