Korea tax revenue to top 500 trillion won in 2027

Korea expects to collect at least 500 trillion won ($332 billion) in taxes next year, a record sum, the Budget Minister said Monday, while vowing to establish a "future response fund" for sustainable growth.

The amount presented by Minister of Planning and Budget Park Hong-keun during a meeting held at the presidential office is far above the government's previous projection of 412 trillion won.

"We plan to come up with a future response fund by reflecting all views, including those calling for active investment and those stressing the need for a financial safety net," Park said.

"We plan to set aside massive tax gains that exceed the long-term trend," Park said, noting the fund will focus on investing in the younger generation, growth engines, regional economies and talent.

Park added that if the country experiences a tax revenue shortfall due to changes in the economic situation, or is in need of a supplementary budget, the fund will be used to provide fiscal stability.

Based on the need to roll out investment in key areas, Park said the government also plans to draw up next year's spending at around 800 trillion won, up 10 percent from this year.

Responding to growing concerns over debt resulting from expansionary fiscal spending, Park said the country is expected to show improvement in terms of the fiscal balance and government debt starting next year.

Yonhap