Samsung Electronics and SK hynix to Pay 11 Trillion Won in Corporate Taxes, Raising Expectations for Record Tax Revenue

[Financial News] Samsung Electronics and SK hynix paid more than 11 trillion won in corporate taxes in the first half of this year.
Taxes paid on last year’s earnings alone already rank as the second-largest amount on record. As the semiconductor industry has entered a full-fledged boom, corporate tax payments are expected to rise even further next year, when this year’s results are reflected.
According to the Data Analysis, Retrieval and Transfer System (DART) of the Financial Supervisory Service on the 30th, Samsung Electronics paid 398.76 billion won in corporate taxes in the first half, while SK hynix paid 722.07 billion won. Combined, the two companies paid 1.12083 trillion won.
Compared with 419.06 billion won in the first half of last year, the amount rose by 717.77 billion won, or 167%. It is the second-largest half-year total on record, after 1.26614 trillion won in the first half of 2019.
In particular, SK hynix set its own record for the largest half-year corporate tax payment, surpassing the 452.64 billion won it paid in the first half of 2019. Samsung Electronics’ payment also jumped 256% from a year earlier.
The increase in tax payments is closely tied to improving conditions in the semiconductor market. Corporate tax is usually finalized and paid in March of the following year based on the previous year’s earnings, with an interim prepayment made in August. As a result, most of the taxes paid in the first half of this year reflect last year’s performance.
This year, however, the two companies’ earnings are improving to a degree that is difficult to compare with last year.
Operating profit in the first half reached 14.67 trillion won for Samsung Electronics and 9.82 trillion won for SK hynix, more than six times higher than a year earlier. Market forecasts are also rising sharply. Recent consensus estimates put this year’s operating profit at 38.5 trillion won for Samsung Electronics and 26.6 trillion won for SK hynix.
Given that operating profit last year was 4.35 trillion won for Samsung Electronics and 4.72 trillion won for SK hynix, the scale of this year’s semiconductor boom is clear.
As a result, corporate tax payments due as an interim prepayment in August and as a final payment in March next year are also likely to set new records.
The highest annual combined corporate tax payment by Samsung Electronics and SK hynix was 15.6387 trillion won in 2019. At the time, it reflected earnings from the 2018 semiconductor supercycle.
This year, the total has already exceeded 11 trillion won in the first half alone. That means the previous record is likely to be surpassed. Some forecasts even suggest annual corporate tax payments could exceed 100 trillion won if the two companies’ operating profit reaches the 500 trillion to 600 trillion won range and the effective tax rate is applied simply.
However, this is only a rough estimate. Actual tax payments vary depending on factors such as tax credits for research and development and facility investment, as well as the method of interim prepayment. In particular, if a large share of this year’s profits is generated in the second half, the August interim payment could be smaller than the annual estimate.
Even so, expectations continue to grow that the semiconductor boom will have a significant impact not only on exports and corporate earnings, but also on tax revenue. As Samsung Electronics and SK hynix expand facility investment and R&D spending, a virtuous cycle in which taxes, investment and exports all rise together is increasingly likely.

[email protected] Kang Jung-mo Reporter