NTS Audits 114 Firms for Monopolistic Practices; KRW 319.5 Billion Levied

The National Tax Service (NTS) collected 319.5 billion won in back taxes after auditing 114 companies that disrupted markets and gained unfair profits through monopolistic practices and collusion. The investigation, conducted from September of last year to June of this year, found that 248 billion won—approximately 78% of the total levied amount—came from the top 10 companies.

By category, 180.9 billion won was levied in 9 cases involving market monopolies, and there were 18 criminal penalty cases, including 11 referred to prosecutors. Additionally, 35.9 billion won was levied from franchise headquarters, and 20.4 billion won from the processed food and daily essentials sectors.

Comprehensive food manufacturer Company A was found to have raised product prices by approximately 5% and improperly booked 20 billion won in sales incentives paid to retailers as logistics costs. The company also funneled about 15 billion won in profits to affiliated companies by inflating outsourcing costs and overcharging imports via overseas subsidiaries, resulting in 20 billion won in back taxes.

Food and beverage manufacturer Company B was criminally penalized and levied approximately 7 billion won for allegedly improperly benefiting from tariff allocation quotas by importing raw materials under the names of retired employees and receiving false tax invoices.

Franchise Company D effectively raised prices through shrinkflation by reducing product volumes. The company was levied 20 billion won for evading 70 billion won in corporate income tax by purchasing raw materials at inflated prices from affiliates and having affiliates cover approximately 2 billion won in promotional costs.