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.