Pedestrians are on a way to work after Chuseok holiday in Seoul, Sept. 19. Yonhap

The tax collected from the earnings of salaried workers is expected to account for the largest portion of the government's annual tax revenue this year, according to a government report, Monday.

If this happens, it will mark the first time in Korea that the proportion of earned income tax surpasses that of corporate tax on profits earned by businesses.

The report from the Ministry of Economy and Finance regarding annual tax revenue indicates that earned income tax is projected to comprise 18.9 percent of total tax revenue in 2024, compared to corporate tax at 18.4 percent.

The forecast was made as earned income tax is likely to increase by 3 trillion won ($2.29 billion) from the previous year, whereas corporate tax is likely to decrease by 17 trillion won over the same time period.

In terms of growth rate, earned income saw an average increase of 9.6 percent from 2008 to 2023, with totals reaching 15.6 trillion won in 2008 and 62.1 trillion won in 2023.

During the same period, corporate income tax increased from 39.2 trillion won in 2008 to 80.4 trillion won in 2023, resulting in an average growth rate of 4.9 percent.

The finance ministry analyzed that the growth rate of earned income tax has accelerated, noting that the total amount collected doubled in six years, rising from approximately 30 trillion won in 2006 to 62.1 trillion won in 2023.

The ministry attributed the increase in earned income tax to a high employment rate, which reached a record 70 percent in 2023.

It also noted that salaried workers have been earning more in recent years, particularly in 2018 and 2019, when the minimum wage increased significantly by 16.4 percent and 10.9 percent, respectively.

On the other hand, corporations have been making lower profits due to a sluggish economy.

Moreover, the Yoon Suk Yeol administration reduced the maximum corporate tax rate from 25 percent to 24 percent in 2023 as part of its vision for private sector-driven economic growth.

This measure was implemented with the belief that easing tax regulations would encourage companies to achieve higher profits, ultimately leading to increased tax contributions to the national economy.

Meanwhile, critics argue that the corporate-friendly Yoon administration is neglecting the tax burden on salaried workers amid a period of high living costs and elevated interest rates.

"It should be salaried workers who should pay less tax, not conglomerates," a critic said.