Higher tax revenue, home sales buoy Korea's fiscal balance sheet

Korea's fiscal balance sheet improved from a year earlier during the January-July period amid strong tax revenue growth driven by higher incomes and an increase in home transactions, the Budget Ministry said Friday.

The managed fiscal balance, a key gauge of fiscal health calculated under stricter criteria, posted a deficit of 64.8 trillion won ($48.2 billion) as of the end of July, according to the Ministry of Planning and Budget, marking an improvement of 22 trillion won from the same period in 2025.

It was the lowest deficit for the January-July period since 56.9 trillion won was posted in 2021.

Tax revenue reached 274 trillion won during the January-July period, up 41.4 trillion won from a year earlier.

Corporate tax revenue rose by 4.4 trillion won on the back of strong earnings by domestic companies.

Income tax revenue increased by 12.2 trillion won, driven by bonuses paid by domestic companies and a rise in home transactions.

Securities transaction tax revenue rose by 6.4 trillion won during the period amid higher trading volume in the market.

Nontax revenue and fund revenue increased by 9 trillion won and 20.7 trillion won, respectively, from a year earlier.

Total government expenditures amounted to 476.2 trillion won during the seven-month period, up 33.7 trillion won from a year earlier.

As of the end of July, the central government's outstanding debt stood at 1.35 quadrillion won, up 15.7 trillion won from a month earlier.

Yonhap