South Korea forecasts 87.5 trillion won in corporate tax revenue for 2025, up 1 trillion won, driven by strong chip sector profits from AI demand.

South Korea expects higher corporate tax revenue in 2025, projecting 87.5 trillion won—1 trillion won above earlier estimates—due to strong earnings at semiconductor giants Samsung Electronics and SK hynix, driven by rising AI-related demand and exports. A 22.4% year-on-year profit increase among top firms supports the outlook, with tax revenue typically rising the year after chip profits surge. However, risks include potential market volatility from AI bubble concerns, sectoral weaknesses in autos and petrochemicals, and uncertainty over a planned corporate tax hike that could add 700 billion won. The government is reviewing data to determine budget adjustments.