Samsung and SK Hynix Tax Windfall Outlook Puts Fiscal Use in Focus

A semiconductor boom is drawing attention to how the Korean government may use an extraordinary rise in corporate tax revenue from Samsung Electronics and SK Hynix. According to the securities industry on the 15th, KB Securities projected the two companies’ combined operating profit at 630 trillion won this year, nearly seven times last year’s 91 trillion won. It also forecast their combined operating profit next year at 906 trillion won. As a result, some observers say the two firms’ corporate tax payments could reach 100 trillion won this year and 130 trillion won next year. That would exceed the government’s total 2025 corporate tax revenue of 84.6 trillion won. However, concerns are growing that the benefits of growth are not spreading across the wider economy, deepening K-shaped polarization. Source: rss.donga.com