South Korea corporate tax growth concentrated in Seoul metropolitan area

Approximately 90% of the increase in South Korea's corporate tax revenue over the past five years has been concentrated in the Seoul metropolitan area. According to data from the National Tax Service released to lawmaker Jung Tae-ho, the total corporate tax burden in the metropolitan region rose by 41.7% between 2020 and 2023, while non-metropolitan areas saw an increase of only 14.3%.

In 2023, the metropolitan area accounted for 78.4% of the nation's total corporate tax burden, despite hosting only 60.8% of the reported corporations. Seoul alone exhibited extreme concentration; while it accounts for 29.1% of the country's reported corporations, it generated 52.8% of the total corporate tax revenue.

In contrast, several non-metropolitan regions saw a decline in tax burdens despite an increase in the number of corporations. In Sejong, the number of corporations grew by 46.5%, yet the tax burden decreased by 2.5%. Similar trends were observed in Gyeongbuk and Jeju, where tax burdens fell by 3.2% and 3.5% respectively, even as corporate numbers rose. Lawmaker Jung Tae-ho emphasized the need for policies that ensure high-value companies and headquarters functions are rooted in regional areas to achieve balanced national development.