South Korea's first-half tax revenue rises W33tr to W223tr, led by securities transaction tax surge

South Korea collected 223 trillion won ($155 billion) in national taxes in the first half of this year, up 33 trillion won from the same period last year. A surge in stock market activity drove securities transaction tax revenue up 338.7%, leading the overall gain, while income tax receipts also rose sharply on the back of higher corporate bonus payouts and a recovery in real estate transactions. The collection rate against this year's target reached 53.7%, exceeding the five-year average.

According to the Ministry of Economy and Finance's June 2026 national tax revenue report released Friday, cumulative national tax revenue for January through June reached 223 trillion won, a 33 trillion won (17.4%) increase from a year earlier. The collection rate against the supplementary budget target of 415.4 trillion won stood at 53.7%. Tax revenue for June alone came to 23.1 trillion won, up 5.5 trillion won (31.1%) from the same month last year.

The securities transaction tax was the primary driver of first-half revenue growth. It jumped from 1.5 trillion won in the first half of last year to 6.8 trillion won this year — a gain of 5.2 trillion won, or 338.7%. The surge reflected a sharp rise in trading volume on both the Kospi and Kosdaq, compounded by the restoration of the securities transaction tax rate that took effect this year. Growing trade in high-risk products such as leveraged exchange-traded funds also amplified market volatility and boosted overall transaction volumes, contributing to the gain.

Because the securities transaction tax is levied on each trade regardless of profit or loss, higher trading activity directly translates into greater revenue. The rise in portfolio turnover amid recent market volatility further reinforced the gain. The special rural development tax, levied alongside the securities transaction tax on Kospi trades, also benefited from the surge in trading volume, reaching 10.1 trillion won in the first half — up 6.5 trillion won (175.1%) from a year earlier.

Income tax revenue rose to 75.7 trillion won in the first half, up 10.4 trillion won (15.9%) from a year earlier, driven by higher wage withholding tax on expanded corporate bonus payments and increased capital gains tax on a recovery in real estate transactions. Corporate tax climbed 4.3 trillion won (9.6%) to 49.3 trillion won on improved earnings, while value-added tax rose 4.9 trillion won (12.2%) on higher imports and a decline in refunds.

Education tax fell 100 billion won from a year earlier, and liquor tax also declined by 100 billion won. The transportation, energy and environment tax rose 300 billion won in the first half, reflecting a partial rollback of the flexible fuel tax rate reduction.

June's national tax revenue of 23.1 trillion won was 5.5 trillion won higher than a year earlier. The securities transaction tax contributed 1.2 trillion won to the increase, while income tax added 1.4 trillion won on higher total wage payments and a rise in housing transactions. Corporate tax rose 400 billion won due to deferred filings from the March final return deadline, and both value-added tax and customs duties increased — by 400 billion won and 200 billion won, respectively — on higher imports. The transportation, energy and environment tax, however, fell 100 billion won.