This illustrated image depicts tax revenue. (Herald DB)
This illustrated image depicts tax revenue. (Herald DB)

South Korea's tax revenue is expected to rise 9.9 percent from a year earlier in 2025 but fall short of the government's initial projection, the finance ministry said Thursday.

The government expects to collect an estimated 369.9 trillion won ($263.7 billion) in taxes this year, up 33.4 trillion won from 2024, according to a tax revenue re-estimation by the Ministry of Economy and Finance.

The annual tax revenue will be smaller than the projection of 372.1 trillion won made when the government proposed an extra budget bill in June.

The finance ministry said it revised down the tax revenue estimate due to the appreciation of the Korean won, which will likely lead to a 2.4 trillion won drop in import-related value-added tax.

The average won-dollar exchange rate stood at 1,439 won in the January-May period but went down to 1,379 won in the June-August period.

The extension of a fuel tax cut aimed at easing people's financial burden and income tax refunds for self-employed workers, such as delivery riders, are also attributable to the decline in tax revenue, the ministry noted.

However, this year's revenue from income tax is expected to increase by 10.9 trillion won from that of last year amid a gradual recovery of the economy.

Corporate tax revenue is also projected to expand 21.1 trillion won thanks to improved corporate earnings, the ministry said. (Yonhap)