South Korea’s tax revenue fell by $7.2 billion (9.4 trillion won) in the first eight months of 2024, mainly due to weak corporate earnings from 2023, according to the Ministry of Economy and Finance. Corporate tax revenue dropped 26.9% to about $35 billion (45.6 trillion won), reflecting a sharp profits decline for companies listed on the KOSPI and KOSDAQ.

Despite a rise in consumer spending that pushed value-added tax up by 13.6%, total revenue decreased by 3.9% year-on-year. The government expects a significant tax revenue shortfall for 2024, with total revenue projected to be $258.8 billion (337.7 trillion won), 8.1% lower than initial forecasts.