South Korea’s budget minister has projected that the government will collect at least 500 trillion won (US$332 billion) in tax revenue next year, marking a new record for the country’s fiscal intake.
The announcement, made Monday, underscores the strength of the domestic economy and provides the government with increased fiscal flexibility as it prepares its 2027 budget framework.
The forecast follows a period of robust tax collection, with May revenues rising nearly 19 percent year-on-year.
This surge was driven by higher household incomes and significant capital gains stemming from a recent rally in equity markets.
The sustained momentum in tax receipts suggests that corporate profitability and consumer spending remain resilient despite broader global economic uncertainties.
In addition to the revenue projection, the minister vowed to establish a "future response fund." While specific details on the fund’s allocation were not immediately disclosed, such initiatives typically aim to bolster national resilience against economic shocks, support strategic industries, or fund long-term infrastructure projects.