South Korea probes 50 firms for tax evasion, including misuse of corporate homes

South Korea's National Tax Service has initiated tax investigations into 50 companies, including five major corporations, suspected of widespread tax evasion. The probe focuses on allegations that company assets, particularly high-value properties, were used for the personal benefit of owners and their families, circumventing corporate and tax laws.

One case highlighted involves a company that purchased a luxury home worth 20 billion won (approximately $14.5 million) in Seoul's Hannam-dong district. The company reportedly spent over 10 billion won of corporate funds on renovations and interior work for this residence, which was used by the owner's family despite them already owning another luxury property nearby worth 30 billion won. The company also allegedly paid the owner an exorbitant salary, far exceeding industry averages, and provided fraudulent wages to family members who did not work there.

Further investigations revealed that 41.6% of 2,639 high-value corporate-owned properties surveyed were used by owners or their families for personal residence or other private purposes. The investigations will also examine cases of real estate speculation, such as exploiting tax benefits for temporary second-home ownership, and the misuse of corporate facilities like resorts for personal use. The National Tax Service stated it will thoroughly examine the financial flows to determine if corporate funds were improperly used for personal wealth accumulation and will pursue criminal charges for tax fraud where applicable.