Tax revenue rises 3 trillion won in January in interest, consumption

Korea’s tax revenue rose 3 trillion won ($2.28 billion) in January on year amid an economic recovery, the finance ministry said Thursday.

The government collected 45.9 trillion won in taxes in the first month of the year, compared to 42.9 trillion won the previous year, according to the Ministry of Economy and Finance.

The increase came as the amount of income taxes grew 600 billion won on higher interest rates and a rise in the number of employed people, while value-added taxes also rose 2.3 trillion won on more private spending.

Led by the increasing collection of taxes, the country’s total revenue rose 5.7 trillion won to 67.1 trillion won.

Total expenditures also advanced 4.8 trillion won from a year earlier to 55.9 trillion won as the government spent more on subsidies and welfare projects for vulnerable classes, according to the ministry.

The country, accordingly, posted a fiscal surplus of 11.2 trillion won in January.

The managed fiscal balance, another key gauge of fiscal soundness calculated on a stricter term, also logged a surplus of 8.3 trillion won, the ministry said.

In 2023, the country’s total revenue fell 77 trillion won on-year to 497 trillion won, revenue from as tax collection dropped by 51.9 trillion won due to poor corporate performances and the property market slump.

Yonhap