The South Korean government reported a significant recovery in its national tax revenue, surpassing the estimates set in the supplementary budget. The total revenue for the last year was 373.9 trillion won, which is an increase of 1.8 trillion won compared to the supplementary budget that projected 372.1 trillion won. This marks the first time in three years that South Korea has emerged from a tax revenue shortfall, largely attributed to strategic adjustments made by the government in anticipation of declining tax revenues due to economic disruptions.

In the wake of two consecutive years of substantial tax revenue shortfalls, the government proactively addressed the situation during the supplementary budget discussions last year by reducing expected revenues by approximately 10 trillion won. This decision was instrumental in stabilizing government finances, as it allowed the government to manage expectations better and mitigate the effects of economic downturns on revenue collection. Notably, adjustments to corporate and income tax collections, which saw an increase following an uptick in corporate performance, played a critical role in this recovery.

However, the analysis also revealed areas of concern; despite the overall revenue exceeding expectations, non-tax revenues fell short of projections by 3.9 trillion won, primarily due to an unsuccessful sale of Nexon stocks. The report noted that unspent budget amounts totaled 10 trillion won, which reflects a significant reduction from the previous year's 20.1 trillion won surplus. This careful financial management has resulted in a high expenditure execution rate of 99.7%, the highest in five years, indicating a focus on improving fiscal discipline and management of public funds.