Korea's tax revenue drops amid property market slump

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Korea's tax revenue drops amid property market slump

Published: 04 Oct. 2023, 18:40

JIN MIN-JI
jin.minji@joongang.co.kr

[YONHAP]

Korea's tax revenue fell to 47.6 trillion won ($34.9 billion) on-year through August this year, data showed Wednesday, amid the prolonged slump in the property market.

Tax revenue reached 241.6 trillion won during the January-August period, down from 289.3 trillion won tallied a year earlier, according to the Ministry of Economy and Finance.

Over the period, the amount of income tax collected fell 13.9 trillion won to 77.2 trillion won, led mostly by a lower amount of capital gains and gift tax collected amid declining home sales.

Korea also collected 20.2 trillion won less in corporate taxes during the period due to companies' sluggish earnings in 2022.
In August alone, the government collected 24 trillion won in taxes, down 4.3 trillion won from the previous year.

Last month, Korea's finance ministry revised its annual tax revenue estimate to 341.4 trillion won, down 59.1 trillion won from the previous outlook, citing weak corporate earnings and a slump in the property market.

Yonhap