April 20, 2024

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[THE INVESTOR] The tax burden for households in South Korea hit a record high in 2016, data showed March 1, further worsening their financial situation amid a prolonged economic slowdown.

Households spent more than 1.9 million won (US$1,670) in taxes on average in 2016, up 2.1 percent from a year earlier, according to data compiled by Statistics Korea.

It marked the highest amount since the statistics office started collecting data on the tax burden in 2003.

The increased tax burden has led to a hike of tax revenue.

The government collected 242.6 trillion won in taxes in 2016, up 24.7 trillion won from a year earlier.

South Korea's quasi-taxes, which include social insurance premiums and the national pension, are also adding to the woes of ordinary households.

South Koreans aged between 18 and 59 are required to join the National Pension Service, South Korea's state pension fund, when they are on the payroll.

On average, South Korean households spent 130,320 won on the pension last year.

Households spent 422,633 won in taxes and quasi-taxes on average per month in 2016, accounting for 9.6 percent of their income, according to the statistics office.

By HERO (wone0102@heraldcorp.com)