South Korea's fiscal deficit narrowed in the first half of 2026 to its lowest level in three years as tax revenue rose sharply despite higher spending. The managed fiscal balance deficit stood at 84.4 trillion won at the end of June, improving by 9.9 trillion won from the same period in 2025, while an official from the Ministry of Planning and Budget said it was the lowest level since 83 trillion won in 2023. National tax revenue for January through June rose 33 trillion won from a year earlier to 223 trillion won, helped by a 4.3 trillion won increase in corporate tax on stronger business earnings, a 10.4 trillion won gain in income tax tied to large bonus payments and a higher number of home transactions, and a 5.2 trillion won rise in securities transaction tax on heavier market trading. Nontax revenue and fund revenue also increased by 9 trillion won and 19.3 trillion won, respectively. Total government expenditure rose 36.6 trillion won to 425.8 trillion won due to increased support for national health insurance and cash handouts related to high oil prices. Central government debt stood at 1,338.5 trillion won at the end of June, down 6.8 trillion won from a month earlier.