We’ve reported several times that during the continuing recession, only the government’s tax revenue has been plentiful.
The public sector, which refers to the government and state-owned companies, recorded a surplus for three years straight. Last year, the surplus exceeded 40 trillion won, the highest ever.
This was due to a rise in taxes and a drop in public sector investments.
Park Jin-hyung has more.
Living circumstances for individual families are still tough, but the public sector is doing well.
Last year, the public sector recorded a surplus of 43.9 trillion won, the highest in history.
Moreover, it has been recording surpluses for three years straight.
While the central government was still in a deficit, the level of deficit dropped considerably.
This was because the national tax income increased nearly 28 trillion won compared with last year due to VATs and income taxes.
More taxes were gathered from the people to make up for the central government’s deficits.
State-owned finance companies like the Korea Development Bank, Korea Housing Finance Corporation and the Export-Import Bank are also recording high gains.
The profit of such state-owned finance companies last year was a surplus of 4.8 trillion won, the largest in seven years since the 2009 surplus of 5.5 trillion won.
The Bank of Korea, which tallied up the total, explained. “The income of state-owned finance companies and financial brokerage services has increased due to the increase in loans. Property income like revenue from foreign currency assets also increased.”
Nonfinancial state-owned enterprises like KEPCO and LH also recorded surpluses for the second straight year.
But surpluses of these state-owned companies are not completely welcomed.
The surplus from the year before last was thanks to a one-time factor, selling the land of the head office, and last year it was the drop in low oil prices and investments to the lowest in history that made the surplus possible.
Park Jin-hyung reporting for Yonhap News TV.
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