Korea is set to draw up a record 800 trillion won super budget next year as semiconductor-driven tax revenue boosts government finances. The Ministry of Planning and Budget is finalizing the proposal, which could mark the first double-digit spending increase since 2009. President Lee Jae Myung urged the government to use the stronger fiscal position for future growth and cut nonessential spending.
Officials load semiconductors from Samsung Electronics and SK hynix onto an aircraft bound for Hong Kong at Korean Air's cargo terminal at Incheon International Airport, July 30. Joint Press Corps
Next year’s budget is projected to top a record 800 trillion won ($578 billion), with national tax revenue expected to exceed 600 trillion won on the back of higher corporate tax receipts fueled by the semiconductor boom, government insiders said Tuesday.
They said the Ministry of Planning and Budget is in the final stages of preparing the budget proposal.
Last month, the ministry suggested a spending increase of 10 percent or more from this year’s 729.9 trillion won initial budget, signaling that next year’s budget could exceed 800 trillion won.
