South Korea’s tax revenue hit a record high of 265.4 trillion won ($245.1 billion) last year thanks to a boom in local real estate market and improvement in local companies’ earnings, government data showed.
According to the Ministry of Strategy and Finance on Tuesday, the government has collected 265.4 trillion won in taxes last year, up 22.8 trillion won from a year earlier. It is also 14.3 trillion won higher than the target of 251.1 trillion won set by the government last year. The progress rate of tax revenue, which refers to the percentage of actual tax revenue collected to the target amount, was also up 1.5 percentage points to 105.7 percent from a year ago.
Tax revenue increased across the board last year, according to the government data.
The Korean government collected 75.1 trillion won in income tax last year, 6.6 trillion won higher from a year earlier, and 59.2 trillion won in corporate tax, up 7.1 trillion won from a year ago. Both figures are the all-time highs, said the ministry. Value added tax, excluding regional consumption tax revenue, also rose 5.3 trillion won to 67.1 trillion won.
The excess in income tax collection was largely from an increase in income earned by taxpayers. The average monthly wage of full-time Korean worker grew 2.9 percent on year to 3.8 million won in the January-November period on higher wages, and the number of regular workers expanded 2.9 percent on year to 13.3 million during the same period.
The country’s real estate boom also contributed to the rise in income tax revenue. Building trade transaction jumped 14.1 percent on year to 2.1 million units last year, and that of lands also rose 5.0 percent to 986 lots.
Tax revenue from corporate tax also expanded thanks to improved business earnings.
National tax revenue grew more than the target on the back of the country’s solid economic growth rate of 3.1 percent last year, said a government official. It is the third straight year for the government to report surplus in national income.
By Cho Si-young and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]