Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax burden in South Korea to exceed 20 pct this year

Tax burden in South Korea to exceed 20 pct this year

Content image - Phnom Penh Post
The commercial district of Gangnam is seen in South Korea’s capital. wikicommons

Tax burden in South Korea to exceed 20 pct this year

(The Korea Herald/ANN): South Korea’s tax burden ratio is expected to surpass 20 per cent of its gross domestic product mark for the first time this year, as the government pushes forward expansionist fiscal policies, officials said Sunday.

The nation’s tax income this year is estimated at 365 trillion won ($323.6 billion), up 5.5 per cent from the previous year, according to data compiled by the Ministry of Economy and Finance and Ministry of Interior and Safety.

Of the estimated total, national taxes will account for 287.1 trillion won, up 19 trillion won from the initial target amount, the Finance Ministry said. The Interior Ministry, in charge of local affairs and taxes, suggested that local taxes will total at 77.9 trillion won.

With the country’s estimated GDP at 1,799.6 trillion won, the increase in tax revenues is to raise this year’s tax burden to an unprecedented 20.28 per cent.

The tangible increase in tax revenues was largely attributable to the Moon Jae-in administration’s blueprint of expansive fiscal policies. His policy stress on “income-led growth” and “fair economic order” were backed by a series of tax system revisions, including a hike in the corporate tax rate and expansion of real estate tax brackets.

“Increases in tax earnings will outpace the amount of government spending on earned income and child support systems,” an official of the Finance Ministry said, speculating that the tax burden would continue to increase in the upcoming years.

While some observers expressed concerns over the tax burden, a report by the National Assembly Budget Office showed that the overall level of taxation in Korea would still be one of the lowest among peer countries.

The average tax burden rate for the Organization for Economic Cooperation and Development member states reached 25 percent in 2015, when Seoul’s figure was 18.5 percent, ranking 33rd lowest among 35 states checked, data showed.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Banteay Meanchey gunfight sees 15 Thais arrested, three officers injured

    The Banteay Meanchey Military Police have arrested 15 Thai suspects and their accomplices after a gun battle between two Thai groups caused injuries to three police officers in the early hours of November 21, local authorities said. National Military Police spokesman Eng Hy said that according to

  • PM: Do not defile Tonle Sap swamp forest or else

    Prime Minister Hun Sen ordered police to arrest anyone – including government officials – involved with the deforestation of the flooded forests surrounding the Tonle Sap Lake because it is an area important to the spawning of many species of fish, among other reasons. Speaking in a