Korea's fiscal balance continues to improve through August: Budget Ministry

Korea logged the smallest fiscal deficit through August in eight years on the back of strong tax revenue growth driven by higher incomes and an increase in home transactions, the Ministry of Planning and Budget said Thursday.

The managed fiscal balance, a key gauge of fiscal health calculated under stricter criteria, posted a deficit of 43 trillion won ($32 billion) as of the end of August, according to the Budget Ministry, marking an improvement of 45.3 trillion won from the same period in 2025.

The end-August tally marks the lowest since a fiscal deficit of 12 trillion won during the same period of 2018, according to the ministry.

Tax revenue reached 329.9 trillion won during the January to August period, up 69.1 trillion won from a year earlier.

Corporate tax revenue rose by 28.2 trillion won on the back of strong earnings by domestic companies.

Income tax revenue increased by 14.4 trillion won, driven by bonuses paid by domestic companies and a rise in home transactions.

Securities transaction tax revenue rose by 7 trillion won during the period amid higher trading volume in the market.

Nontax revenue and fund revenue increased by 9.2 trillion won and 32 trillion won, respectively, from a year earlier.

Total government expenditures amounted to 524.7 trillion won during the eight-month period, up 39.3 trillion won from a year earlier.

As of the end of August, the central government's outstanding debt stood at 1.4 quadrillion won, up 17.9 trillion won from a month earlier.

Yonhap