South Korea’s government collected nearly 19 percent more in taxes during May compared to the same month last year, driven by higher household incomes and capital gains from a recent rally in equity markets.
The data, reported by The Korea Herald citing Yonhap, underscores the direct fiscal transmission of the country’s sustained stock market boom.
The surge in tax receipts is closely tied to the performance of major semiconductor stocks, which have led the broader market higher.
This equity strength has not only boosted asset prices but also expanded the tax base through capital gains levies.
The government’s improved fiscal position reflects the broader economic momentum, as investor confidence remains high despite periodic market turbulence.
Retail participation in the market has also reached record levels, with the number of stock trading accounts in South Korea hitting an all-time high.