Tax revenue up W5.2t in June amid economic recovery

South Korea's tax revenue rose 5.2 trillion won ($4.5 billion) in June compared with a year earlier amid an economic recovery and a boom in property and stock markets, the finance ministry said Tuesday.

The country collected 20 trillion won in taxes in June, higher than the 14.7 trillion won the previous year, according to the Ministry of Economy and Finance.

The government said corporate tax income increased due to the economic recovery, while a boom in asset markets bolstered capital gains tax income.

In the January-June period, tax revenue increased 48.8 trillion won on-year to 181.7 trillion won.

In the first half, the government's total income, including tax revenue, amounted to 298.6 trillion won, up 72.6 trillion won from the previous year.

The country's gross expenditures grew 29.8 trillion won on-year to 345.8 trillion won in the cited period due to increased fiscal spending over the pandemic.

Accordingly, the country posted a fiscal deficit of 47.2 trillion won in the first six months of the year, smaller than a shortfall of 90 trillion won a year earlier.

The central government debt amounted to 898.1 trillion won as of end-June, up from 819.2 trillion won at the end of last year.

The country created this year's second extra budget, worth 34.9 trillion won, last month to finance another round of pandemic relief funds. The supplementary budget will be funded without a debt sale as the government will use excess tax revenue of some 31.5 trillion won.

The finance ministry said uncertainty has increased over the tax revenue trend in the second half due to a flare-up in COVID-19 cases.

The country, meanwhile, plans to buy back Treasury bonds this month to repay 2 trillion won in government debt.

With the debt repayment, the national debt is expected to reach 963.9 trillion won this year, down from the 965.9 trillion-won estimate made in March. (Yonhap)