Seoul, September 11 (QNA) - South Korea announced today that its fiscal balance improved in the January-July period compared with the same period last year, driven by higher tax revenue on the back of increased incomes and domestic transactions.

According to data from South Korea's finance ministry, the managed fiscal balance, a key gauge of fiscal health calculated under stricter criteria, posted a deficit of KRW 64.8 trillion (USD 47.9 billion) as of the end of July, narrowing by KRW 22 trillion from the same period in 2025.

This marked the smallest deficit recorded for the January-July period since 2021, when the shortfall stood at KRW 56.9 trillion.

The ministry said tax revenue reached KRW 274 trillion over the same period, up KRW 41.4 trillion from a year earlier. Corporate tax revenue also increased by KRW 4.4 trillion, supported by strong earnings at domestic companies.

Income tax revenue rose by KRW 12.2 trillion, driven by bonuses paid by domestic companies and increased domestic transactions. Securities transaction tax revenue, meanwhile, increased by KRW 6.4 trillion over the same period amid higher market trading volumes.

Non-tax revenue and fund revenue increased by KRW 9 trillion and KRW 20.7 trillion, respectively, from a year earlier.

Total government expenditure amounted to KRW 476.2 trillion during the seven months, up KRW 33.7 trillion from a year earlier. (QNA)