SEOUL, Aug. 31 (AJP) — Active stock and housing trading bolstered South Korea's tax revenue on top of a chip-led corporate earnings windfall, pushing cumulative tax income to 274 trillion won ($199.4 billion) through July, up 41.4 trillion won, or 17.8 percent, from a year earlier.
Stock transaction tax collections more than quadrupled to 8.2 trillion won from 1.8 trillion won over the same period last year, reflecting the extraordinary surge in equity trading as well as the restoration of higher transaction tax rates.
The Ministry of Finance and Economy said Monday that national tax revenue totaled 51 trillion won in July alone, up 8.4 trillion won, or 19.7 percent, from a year earlier.
Value-added tax, securities transaction tax and income tax led the increase.
VAT revenue rose 3.2 trillion won to 24.6 trillion won in July as domestic consumption strengthened and imports increased.
South Korea's imports reached $68.57 billion in July, up 26.5 percent from $54.21 billion a year earlier.
The stock-market boom delivered an even more dramatic lift.
Securities transaction tax revenue jumped 401 percent on year to 1.4 trillion won in July. Trading value in listed shares surged 232.4 percent to 2,087.2 trillion won in June from 627.9 trillion won a year earlier.
The government also restored the securities transaction tax rate this year to 0.05 percent for KOSPI shares and 0.20 percent for KOSDAQ shares, after lowering the rates in stages through 2025.
Income tax revenue rose 1.8 trillion won to 13.6 trillion won in July, helped by higher wage payments and stronger housing transactions.
Home sales increased 6 percent on year to 66,500 in May, lifting capital gains tax collections.
Customs revenue rose 200 billion won to 800 billion won as imports expanded, while corporate tax, inheritance and gift tax and individual consumption tax each increased by about 100 billion won.
Transport, energy and environment tax revenue fell 300 billion won from a year earlier after the government expanded fuel-tax cuts.
For the first seven months, income tax provided the largest increase in absolute terms, rising 12.2 trillion won to 89.3 trillion won as performance bonuses and property transactions increased.
Corporate tax revenue climbed 4.4 trillion won to 51.8 trillion won on improved company earnings, while VAT collections rose 8.1 trillion won to 69.4 trillion won on stronger private consumption and imports.
The stock market produced some of the fastest gains.
Securities transaction tax revenue surged 348.5 percent to 8.2 trillion won from 1.8 trillion won a year earlier. Rural special tax revenue, which is also levied on KOSPI transactions, jumped 182.5 percent to 13.1 trillion won as trading activity soared.
The government had collected 66 percent of its revised full-year tax revenue target of 415.4 trillion won by the end of July. That compared with a collection rate of 60.8 percent a year earlier and 56.9 percent in July 2024.
The ministry said it will revise its tax revenue estimate in September after incorporating corporate tax interim payments due at the end of August.
○ South Korea's tax revenue rose 17.8 percent to 274 trillion won through July, helped by stronger stock and housing trading, imports and corporate earnings.
○ Securities transaction tax collections surged 348.5 percent to 8.2 trillion won as listed-share trading value more than tripled from a year earlier.
○ The government had collected 66 percent of its revised 2026 tax target by July, well ahead of the pace in the previous two years.
Copyright ⓒ Aju Press All rights reserved.