Due to the bullish stock market, the securities transaction tax collected last month reached 1.4 trillion Korean won, five times the amount from a year ago. With increased revenue, value-added tax income rose by an additional 3.2 trillion Korean won, 14.8%, and income tax revenue also grew by 1.8 trillion Korean won, 14.9%, driven by increased housing transactions.
According to the Ministry of Finance and Economy’s ‘July National Tax Revenue Status’ report released on the 31st, national tax revenue last month amounted to 51 trillion Korean won, an increase of 8.4 trillion Korean won, 19.7%, compared to the same period last year. The surge in securities transaction tax was particularly notable. The tax, which stood at 300 billion Korean won in July last year, jumped to 1.4 trillion Korean won after one year, a 401% increase. This is attributed to the significant rise in stock market transaction volumes as the Korean stock market experienced a bullish trend, with the average closing price of KOSPI, the Korea Exchange’s main market, reaching 8,468.8 in June. Additionally, the securities transaction tax rate, which was raised this year from 0% to 0.05% for KOSPI and from 0.15% to 0.20% for KOSDAQ, also contributed to the increase.
As stock trading became more active, the Agricultural and Fishing Villages Special Tax—which levies 0.15% of KOSPI stock transaction value—increased by 2 trillion Korean won, 210.9%, compared to the previous year. Tax revenue tripled to 3 trillion Korean won from 1 trillion Korean won in July last year. Customs duties rose by 200 billion Korean won due to increased imports, while corporate tax, inheritance and gift tax, and individual consumption tax each increased by 100 billion Korean won. The Traffic Energy Environment Tax, however, decreased by 300 billion Korean won due to expanded fuel tax reductions.
Cumulative national tax revenue from January to July this year reached 274 trillion Korean won, an increase of 41.4 trillion Korean won, 17.8%, compared to the same period last year. The tax revenue progress rate, indicating performance against the government’s annual target, stood at 66%, exceeding the five-year average of 63.5%.
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