S Korea posts January fiscal surplus of 11.3 tn won

March 15, 2026 / 4:50 PM

Sharjah 24 - WAM: South Korea recorded a fiscal surplus of more than 11 trillion won (US$7.43 billion) in January, driven by higher tax revenues despite an increase in government spending compared with the same month last year, the finance ministry said Thursday.

Strong tax revenue growth

According to Yonhap News Agency, the managed fiscal balance — a key indicator of fiscal health calculated under stricter criteria — showed a surplus of 11.3 trillion won for the month, according to the Ministry of Economy and Finance.

Although the figure was down by 200 billion won from a year earlier, it still marked the fourth-largest surplus recorded for January.

Tax revenue totalled 52.9 trillion won in January, an increase of 6.2 trillion won compared with the same period last year. The rise was mainly driven by higher income tax, value-added tax and securities transaction tax receipts.

Government spending also rises

Total government expenditure reached 60.5 trillion won during the month, up 7.7 trillion won from a year earlier.

The increase partly reflects a base effect, as spending had declined in January last year due to the Lunar New Year holiday, in addition to higher welfare payments made this year.