Korea Tax Revenue May Jump on Chips, Easing Bond Sales: SocGen

South Korea’s corporate tax revenue may rise about 33% in 2027 on record earnings from its two largest semiconductor makers, potentially giving the government room to reduce fiscal deficit bond issuance, according to Societe Generale.

• With Samsung Electronics and SK Hynixenjoying robust demand, aggregate corporate tax revenue may rise to 115 trillion won ($78 billion) in 2027 vs. estimated 86.5 trillion won this year, Kiyong Seong, the firm’s lead Asia macro strategist, writes in a note
• “Stronger corporate profitability should also lift labour income tax receipts”
• Government should remain mindful of extreme cyclicality of semiconductor earnings; premature to ...