Lotto Celebrates 20th Anniversary... Total 1st Prize Winnings 16 Trillion KRW, Average 2 Billion KRW

[Asia Economy Sejong=Reporter Son Seonhee] The online lottery Lotto has marked its 20th anniversary since its issuance. Since its first issuance in December 2002, approximately 8,000 people have won the Lotto first prize over the past 20 years, receiving a total prize amount of 16 trillion KRW.

According to the Ministry of Strategy and Finance Lottery Commission on the 5th, from the first Lotto draw on December 7, 2002, to the 1,043rd draw on November 26 this year, a total of 7,803 people have won the Lotto first prize. The cumulative first prize amount for Lotto is 15.9 trillion KRW, with an average prize of about 2.038 billion KRW per person.

The average number of first prize winners per draw is 7.5. Some draws had a single first prize winner who took home a large sum, while others had as many as 50 first prize winners, resulting in relatively smaller individual prize amounts.

The highest first prize ever was in the 19th draw on April 12, 2003, where one winner received 40.723 billion KRW.

Conversely, in the 546th draw on May 18, 2013, there were 30 first prize winners, with each receiving only 406 million KRW.

Under the current Income Tax Act, lottery winnings are classified as 'other income.' No tax is withheld for amounts up to 50,000 KRW, but a 20% income tax is imposed on amounts exceeding 50,000 KRW, and the tax rate increases to 30% for amounts exceeding 300 million KRW. Additionally, a local income tax amounting to 10% of the income tax is also levied.

For example, if the prize is 2 billion KRW, a total tax of 627 million KRW must be paid, resulting in a net receipt of 1.373 billion KRW.

When first launched in 2002, Lotto was known as a symbol of 'instant wealth,' with annual sales reaching nearly 4 trillion KRW amid a Lotto craze. However, as popularity waned, sales dropped to the 2 trillion KRW range in the early 2010s.

Sales gradually increased again, and last year, annual sales surpassed 5 trillion KRW for the first time. As of the end of July this year, about 3.1 trillion KRW had been sold. Annual sales are expected to reach the high 5 trillion KRW range.

About half of the Lotto sales revenue is used for issuance expenses, sales and consignment fees, and the lottery fund, with the remainder paid out as prizes. The lottery fund generated from Lotto sales is used as resources for the Housing and Urban Fund, Veterans Fund, Cultural Arts Promotion Fund, and for public interest projects such as support for families of adopted children and scholarships for low-income groups.

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