Doha: South Korea's tax revenue has experienced a decline of 7.5 trillion won ($5.2 billion) in 2024 compared to the previous year, primarily due to weak corporate activities. The government reported a collection of 336.5 trillion won in taxes for the year, a decrease from the 344.1 trillion won recorded in 2023.

According to Qatar News Agency, the tax revenue also fell short by 30.8 trillion won compared to the finance ministry's initial forecast in the 2024 budget plan. This shortfall follows a record deficit of 56.4 trillion won the previous year, as noted by the ministry.

The ministry had adjusted its forecast in September, predicting tax revenue of 337.7 trillion won for 2024, but the final figure failed to meet even this revised estimate. The significant drop in tax revenue was largely attributed to a 22.3 percent year-on-year decline in corporate income tax, leading to a loss of 17.9 trillion won, as companies' performance slowed.

In contrast, income tax revenue saw an increase of 1.6 trillion won in 2024, while the value-added tax collected last year also rose by 8.5 trillion won compared to 2023.