Korea's tax revenue to fall short by $44.5 billion, Finance Ministry says

Economy

Published: 18 Sep. 2023, 11:32

Korea's tax revenue to fall short by $44.5 billion, Finance Ministry says

Korea will collect 59.1 trillion won ($44.5 billion) less in tax this year than initially estimated due to dwindling corporate profits and the downturn in financial markets.

The Ministry of Finance and Economy said Monday this year's tax income will come at 341.4 trillion won, down 14.8 percent compared to the initial projection of 400.5 trillion won.

The shortfall is attributed to falling tax revenues in the first six months as export-oriented Korean companies like Samsung Electronics and SK hynix took a hit from sluggish demand for chips and electronic devices.

The government could tap into last year's budget surplus and the ministry's own funds as resources to make up for the shortfall, the ministry said, instead of asking for a supplementary budget.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]