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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, South Korea — November 3, 2025 — South Korea’s National Tax Service (NTS) announced that it has launched a tax investigation into local companies allegedly tied to Cambodia-based criminal networks, including the Prince Group and Huiyuan Group, both of which have been identified as key backers of large-scale scam and phishing operations in the region.
According to the NTS, the Prince Group, which has been accused of orchestrating financial scam activities in Cambodia, established a real estate investment consulting firm (Company A) in a major commercial district in Seoul.
The firm reportedly raised tens of millions of won to several billion won per investor from Korean nationals for supposed overseas real estate investments, and transferred approximately ₩2–3 billion (USD 1.5–2.2 million) abroad.
However, authorities found no verified records of actual property acquisitions, raising suspicions that the funds were laundered and funneled overseas as criminal proceeds.
Investigators also discovered that Company A disguised itself as a liaison office, despite hiring staff and conducting local operations, and failed to report payroll taxes for its employees.
The NTS stated that it will coordinate with law enforcement agencies to ensure recovery of any illicit proceeds and hold both the corporation and its executives accountable.
Separately, a Korean national identified only as Mr. B is under investigation for tax evasion related to foreign exchange transactions allegedly linked to the Huiyuan Group, another Cambodia-based financial entity suspected of money laundering.
Mr. B, who operates a currency exchange business in Korea, is accused of underreporting foreign exchange volumes and income over several years.
While Mr. B claimed to have reported annual transactions of less than ₩100 million and even declared operating losses for five consecutive years, the NTS uncovered evidence of spending in the billions of won, suggesting significant unreported income.
Tax authorities estimate his actual annual foreign exchange transactions exceeded ₩10 billion, and are currently investigating tax evasion on undeclared commission income.
The NTS emphasized that it will “continue to strengthen cross-border cooperation to trace criminal proceeds and impose full tax penalties on illegal overseas fund transfers.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
