(LEAD) S. Korea's fiscal balance improves through Sept.: budget ministry
Managed fiscal balance deficit narrows by 70.5 trillion won year-on-year to 32 trillion won
Quick Look
South Korea's managed fiscal balance posted a 32 trillion won deficit in the first nine months of 2026, an improvement of 70.5 trillion won from the same period in 2025, driven by a 95.4 trillion won surge in tax revenue on strong corporate earnings, the Ministry of Planning and Budget said.
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Why It Matters
South Korea's fiscal balance improved in the first nine months of 2026 compared to the same period in 2025, helped by increased tax revenue on strong corporate earnings.
South Korea's fiscal balance improved in the first nine months of 2026 from a year earlier, helped by increased tax revenue on the back of strong corporate earnings, the budget ministry said Thursday.
The managed fiscal balance, a key gauge of fiscal health calculated under stricter criteria, posted a deficit of 32 trillion won (US$23.9 billion) as of the end of September, according to the Ministry of Planning and Budget, marking an improvement of 70.5 trillion won from the same period in 2025.
The figure marked the smallest deficit since the 17.3 trillion won recorded during the same period in 2018, while the improvement was the largest on record.
Tax revenue reached 385 trillion won during the January-September period, up 95.4 trillion won from a year earlier.
Corporate tax revenue rose by 51.9 trillion won on the back of strong earnings by domestic companies.
In September alone, corporate tax revenue surged 23.6 trillion won on-year to 36.2 trillion won, boosted by interim tax installment payments from chipmakers, including Samsung Electronics Co. and SK hynix Inc.
Income tax revenue increased by 15.7 trillion won, driven by bonuses paid by domestic companies and an increase in housing transactions.
Non-tax revenue and fund revenue increased by 9.3 trillion won and 19.9 trillion won, respectively, from a year earlier.
Total government expenditures amounted to 584.9 trillion won during the nine-month period, up 40.7 trillion won from a year earlier.
As of the end of September, the central government's outstanding debt stood at 1,369.4 trillion won, down 2.7 trillion won from a month earlier.
Open Questions
- What specific measures drove the increase in housing transactions?
- How does the 2026 fiscal performance compare to full-year government targets?
- What is the breakdown of the 40.7 trillion won increase in total government expenditures?
