Chip boom may push Korea’s tax windfall past $37 billion
South Korea's excess tax revenue could exceed 50 trillion won — about $37 billion — this year, driven by a stronger-than-expected semiconductor cycle, according to a Yonhap report cited by Bloomberg.
The windfall would push annual national tax receipts to about 465.4 trillion won, above the 415.4 trillion won target set in April and well past the previous record of 395.9 trillion won from 2022. Samsung Electronics and SK hynix, which posted bumper first-half profits, are driving the surge in corporate tax collections.
The Finance Ministry is due to publish a revised 2026 tax revenue forecast on September 30 but said on Sunday the estimate is not yet finalised. Officials say much of the windfall could fund AI, chips and youth programmes while reducing planned bond issuance.
Why it matters: the chip cycle is filling Seoul's coffers faster than any forecast, giving the government room to spend without borrowing more.
Related stories
View all →
Poll: RBI Likely to Raise Rates to 5.50% in October
38 of 61 economists in a Reuters poll expect the RBI to raise the repo rate to 5.50% at its October 5-7…
Sensex, Nifty tumble 1.5% in broad Monday sell-off
Sensex crashed 1,124 points to 72,772 and Nifty fell 1.56% to 22,780 on crude at $106.7 and a 5.17% US yield, erasing…
SRIT India IPO Opens to Raise Rs 218.40 Crore
Bengaluru-based SRIT India has opened its Rs 218.40-crore IPO at Rs 123-130 per share, with the issue closing September 30 and listing…
Khabar 24h Editorial Desk — our explainers are prepared by the Khabar 24h editorial team using AI-assisted research tools, and every piece is reviewed by a human editor before publishing. We do not claim original reporting: our work is turning complex topics into simple, accurate summaries. Spotted an error? Write to contact@khabar24h.com — our corrections policy aims for same-day review.
More from this author →
Leave a Reply