National debt is expected to exceed 1,000 trillion won for the first time next year. With the government sticking to an expansionary fiscal policy and debt ballooning rapidly, people are likely to pay more in taxes.
The labor union of Seoul Metro warned at a press conference on Monday that it will stage a full-scale walkout beginning on Sept. 14 if the subway operator proceeded with restructuring plans that entail mass layoffs.
According to the Ministry of Economy and Finance on Tuesday, in the first three months of this year the government collected 88.5 trillion won in taxes. That is a first quarter record and a 27.3 percent increase on year.
Tax collections in the first two months rose 25 percent thanks to robust real estate transactions.
Koreans are on average living beyond their means, and increasingly so, recent statistics show.
“Why worry about fiscal deficit? Money can be printed as much as possible by a government. As long as there are jobless people and idle factories, the government must keep on spending to achieve full employment.” This is the...
The budget was awash in red ink in the first half of the year, with the shortfall during that period more than twice the shortfall recorded for the full year of 2019.
As the coronavirus continues to weigh on the economy, tax revenues are shrinking rapidly and spending is jumping. Outgoings were especially heavy in May, when emergency-relief grants were distributed to every household.
The Korean government's deficit grew sharply in the first quarter of 2020, with struggling businesses pulling down tax revenue while the government has spent heavily to offset the economic fallout from the coronavirus pandemic.