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Korea's tax revenue up 11% in 2025 as corporate earnings, wages rise

Published: 10 Feb. 2026, 14:21

With about a week remaining before Korea's Seollal, Bank of Korea staff prepare the release of cash to local commercial banks at the central bank's Gyeonggi regional headquarters in Suwon, Gyeonggi, on Feb. 9. [YONHAP]

Korea's tax revenue rose 37.4 trillion won ($25.66 billion) in 2025 from a year earlier on the back of improved corporate earnings, the Ministry of Economy and Finance said Tuesday.

The government collected 373.9 trillion won in taxes last year, up 11.1 percent from 336.5 trillion won in 2024, according to the ministry.

The 2025 figure is 1.8 trillion won higher than the government's forecast presented during the supplementary budget revision in June last year, though it fell short by 8.5 trillion won compared with its original budget projection of 382.4 trillion won.

The increase in last year's tax revenue was mainly driven by higher corporate tax revenue amid stronger business activity, as well as rising wages and subsequent income tax gains.

Corporate income tax jumped 35.3 percent on-year to 84.6 trillion won amid an economic recovery. In 2024, operating profits of companies listed on the main Korea Composite Stock Price Index surged 174.4 percent on-year to 106.2 trillion won.

Income tax revenue rose 11.1 percent on-year to 130.5 trillion won in 2025, as the number of employed persons increased 1.7 percent and wages per worker climbed 7.4 percent.

Capital gains tax also increased by 3.2 trillion won, supported by a rise in overseas stock trading.

Value-added tax revenue, however, fell 3.7 percent from a year earlier due to higher export-related refunds, while securities transaction tax declined 27.7 percent following a cut in the tax rate, the data showed.

Yonhap