South Korea’s national tax revenue experienced a significant surge, increasing by nearly 13 percent in April compared to the previous year. This substantial boost in government coffers was primarily driven by the recent robust and bullish performance of the domestic stock market, as indicated by new data released Friday.
According to figures from the Ministry of Economy and Finance, the government successfully collected a total of 55.2 trillion won (approximately $36.8 billion) in taxes last month. This represents a marked improvement from the 48.9 trillion won recorded during the same period in the preceding year.
The finance ministry specifically attributed this sharp rise in tax receipts to a dramatic increase in securities transaction levies. These crucial taxes amounted to 1.3 trillion won in April, an astonishing jump from just 200 billion won collected a year prior, underscoring the heightened market activity.
This substantial growth in transaction levies directly reflects a vibrant market rally, which has been significantly fueled by the ongoing artificial intelligence (AI) boom. In March alone, the total transaction value of listed stocks soared to an impressive 1,449.4 trillion won, more than quadrupling its value compared to the previous year.
Further contributing to the overall tax growth, South Korea also implemented new tax policies at the start of this year. A new 0.05 percent transaction tax was introduced for trades on the main stock exchange, while concurrently, the tax rate for transactions in the secondary market saw an increase from 0.15 percent to 0.2 percent.
Beyond market-related taxes, corporate tax revenue also demonstrated a strong ascent, climbing 21.2 percent year-on-year in April to reach 12.8 trillion won. This significant expansion was largely propelled by the impressive earnings performance of the nation’s leading semiconductor manufacturers and major chipmakers.
Furthermore, South Korea’s income tax collection in April amounted to 9.7 trillion won, marking a healthy 14.8 percent increase compared to the same month last year, reflecting positive trends in personal income and employment.
