Seongnam Leads in Tax Revenue Thanks to 'IT, Gaming, and Semiconductors' in Pangyo and Bundang

Regaining the Top Spot in Gyeonggi Province’s 2025 Tax Revenue
Local Income Tax Alone Reaches 871 Billion Won
Total Tax Revenue Surpasses 2.7 Trillion Won
No. 1 in Local Finance, Driven by IT, Gaming, and Semiconductors

Seongnam City in Gyeonggi Province (Mayor: Shin Sangjin) has reported that an increase in local income tax, driven by thriving industries centered around Pangyo and Bundang, has led the city to achieve the highest tax revenue collection in Gyeonggi Province.

Night view of Pangyo Techno Valley brightened by the office lights of advanced industrial companies in Seongnam. Provided by Seongnam City

Seongnam City's local tax revenue for 2025 was tallied at 2.7679 trillion won, ranking first within Gyeonggi Province. During the same period, the city collected 1.658 trillion won in municipal taxes, of which local income tax accounted for 871 billion won, representing 52.5%-the highest proportion among all cities and counties in the province.

Breaking down the local income tax by category, special collection accounted for the largest share at 396.7 billion won, followed by corporate income at 297.4 billion won, capital gains at 92.2 billion won, and comprehensive income at 84.7 billion won.

The predominance of special collection local income tax is attributed to the locational advantages and industrial structure of Bundang and Pangyo. The city’s proximity to Seoul’s Gangnam district has attracted a concentration of high-income workers and companies. This, combined with rising wages, increased withholding in the financial sector, and a growing workforce due to the expansion of tenant companies in the second Pangyo Techno Valley, has enabled Seongnam to maintain the largest scale in the province for the second consecutive year.

The corporate income portion of the local income tax also demonstrates Seongnam’s industrial competitiveness. During the regular filing period, the top 200 corporations paid 207.2 billion won, accounting for about 75% of all corporate tax payments in that period. By industry, online information services led with 24%, followed by software development and supply at 17%, semiconductor and electronic component manufacturing at 9%, finance, securities, and insurance at 8%, and management consulting at 6%. Other sectors such as information processing, trade, automotive, chemical, and telecommunications also contributed evenly.

With advanced industrial complexes such as Pangyo Techno Valley, Seongnam continues its steady growth, distinguished by its urban infrastructure compared to other cities and counties. According to data released by the Gyeonggi-do Economic Science Promotion Agency in September 2025, companies in the first and second Pangyo Techno Valleys are comprised of 61.5% information technology (IT), 11.4% cultural technology (CT), 11.2% biotechnology (BT), and 15.9% in other fields. The workforce at these companies totals approximately 83,400, of which 25,400 are research personnel, representing 30.5% of the total. The total sales of Pangyo-based companies reached 226 trillion won, an increase of about 24 trillion won from the previous year.

This strong corporate performance is attributed to Seongnam’s favorable business environment. In a business environment perception survey conducted by the Korea Chamber of Commerce and Industry of 6,850 companies across 228 local governments nationwide, Seongnam was selected as one of the top 10 most preferred local governments for startups. The city’s main strengths were cited as the synergy effects from the concentration of new industries, accessibility to Seoul, excellent business locations, and high administrative satisfaction.

Home to major IT and gaming companies such as Naver Corporation and Nexon Korea Corporation, Seongnam is securing a stable tax base through the expansion of the second Pangyo Techno Valley, a rise in high-income earners, the formation of real estate value due to proximity to Seoul’s Gangnam and Songpa districts, and an increase in the economically active population. Local income tax serves as a key indicator of Seongnam’s economic status and regional competitiveness, and the city’s high tax collection is being used as a financial resource to support the expansion of smart city infrastructure and the implementation of welfare policies.

To ensure continued growth as a hub for advanced industries, Seongnam City is pursuing various policies, including attracting new companies, supporting overseas expansion of small and medium-sized enterprises, nurturing talent in system semiconductors, and streamlining administrative procedures for business support.

A Seongnam City official stated, "We are grateful to the companies that have faithfully paid their taxes," adding, "We will continue to work towards securing stable financial resources to make Seongnam a hopeful and livable city."

This content was produced with the assistance of AI translation services.