Prosecutors Raid Deutsch Motors Over Alleged 10 Billion Won Tax Evasion

Prosecutors in South Korea have initiated a significant investigation into Deutsch Motors, a prominent dealership for German automotive brands like BMW and BYD, over allegations of substantial tax evasion. The Seoul Central District Prosecutors' Office, specifically its Tax Crimes Investigation Division, conducted a search and seizure at the company's headquarters, focusing on suspicions that Deutsch Motors issued approximately 10 billion won (roughly $7.3 million USD) in fraudulent tax invoices.

This investigation, which began following a complaint lodged by the National Tax Service (NTS), is delving into the motives behind the alleged fraudulent activities. Authorities are seeking to determine whether the primary goal was simple tax evasion or if the scheme was intertwined with the embezzlement of corporate funds. The NTS's special tax investigation unit, known for its rigorous probes into tax evasion and slush funds, led the initial inquiry.

Deutsch Motors, with annual revenues in the trillions of won, has previously been associated with a stock manipulation case. Its former chairman, Kwon Oh-soo, was convicted for artificially inflating the company's stock price between 2009 and 2012. Furthermore, the case has drawn attention due to its connection with Kim Keon-hee, the wife of South Korean President Yoon Suk-yeol, who was also implicated in the stock manipulation allegations and received a guilty verdict in an appellate court last year.

The current investigation into tax evasion adds another layer of scrutiny to Deutsch Motors, raising questions about corporate governance and financial practices within the company. The outcome of this probe could have further implications, given the company's past legal entanglements and its high-profile connections.