Corporate tax revenue next year expected to surpass income tax for the first time in 15 years

Corporate tax revenue next year is expected to overtake income tax again for the first time in 15 years. According to the Ministry of Finance and Economy's proposed budget for next year's national tax revenue, corporate tax is projected at 216.7 trillion won, which is 36.7 trillion won more than the income tax forecast of 180 trillion won. Corporate tax revenue was forecast to more than double next year from 101.3 trillion won this year on the back of the recovery in the semiconductor cycle. In contrast, income tax is maintaining a relatively steady growth trend, supported by an increase in the number of workers and rising asset prices. This outlook shows that Korea's tax revenue can fluctuate significantly depending on the semiconductor industry cycle. The article pointed out that if the economy slows, a shortfall in tax revenue could affect budget execution and policy flexibility.