Fiscal balance improves through May on strong tax revenue

Korea's fiscal balance improved from a year earlier in the first five months of 2026 on strong tax revenue due to improved corporate earnings and a bullish stock market, the Ministry of Planning and Budget said on Thursday.

The managed fiscal balance, a key gauge of fiscal health calculated under stricter criteria, posted a deficit of 54.2 trillion won ($35.96 billion) as of the end of May, according to the Budget Ministry, marking an improvement of 6.8 billion won from the same period in 2025.

Tax revenue reached 199.9 trillion won over the January to May period, up 27.5 trillion won from a year earlier.

The amount of corporate tax collected came to 46.6 trillion won, up 3.9 trillion won from the previous year on strong corporate earnings.

Following major bonuses handed out by businesses, income tax revenue shot up 9 trillion won to 66.7 trillion won. The growth was also attributable to higher capital gains tax revenue following an increase in the number of homes traded.

The securities transaction tax rose 4.1 trillion won to 5.4 trillion won following the recent bullish run on the main bourse.

Nontax revenue and fund revenue rose by 7.6 trillion won and 15.1 trillion won, respectively, from a year earlier.

Total government expenditures amounted to 353.3 trillion won in the January to May period, up 38.1 trillion won from the same period last year.

As of the end of May, the central government's outstanding debt stood at 1.3 quadrillion won, up 23.6 trillion won from a month earlier.

Yonhap