South Korea’s Tax Revenue Forecast Revised Downward, Gap May Reach 30Trillion Won
Seoul, South Korea – The South Korean Ministry ofEconomy and Finance announced on September 26th a revised forecast for tax revenue in 2024, revealing a significant shortfall. The central government taxrevenue is now projected to reach 337.7 trillion won (approximately 1.78 trillion yuan), a decrease of 29.6trillion won (8.1%) compared to the initial forecast of 367.3 trillion won.
This downward revision marks the second consecutive year that the South Korean government has adjusted its tax revenue forecast, highlighting the severity of thetax gap. The revised figure also falls below last year’s central government tax revenue of 344.1 trillion won, which was already a record low.
The Ministry attributed the shortfall to the global trade contraction and the slump inthe semiconductor industry, leading to a substantial decline in corporate tax revenue. The ministry further explained that the government has recalculated the tax revenue for the entire year and adjusted the previous forecast accordingly.
This significant revision raises concerns about the potential impact on the South Korean economy. The government may face challenges in meeting its fiscal targetsand implementing key policy initiatives. The situation also underscores the need for the government to explore alternative revenue sources and implement measures to stimulate economic growth.
The revised tax revenue forecast is a stark reminder of the economic challenges facing South Korea. The government will need to carefully monitor the situation and take appropriate steps to mitigate the potential impact on theeconomy.
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