[Alpha Biz= Kim Jisun] The National Tax Service of Korea (NTS) has launched a tax investigation into OB Beer, the brewer behind Korea’s top-selling beer brand, Cass.
According to industry sources on August 5, the Seoul Regional Tax Office’s Investigation Bureau No. 4 has recently collected relevant documents from OB Beer and commenced the investigation procedures.
Bureau No. 4 is known for handling irregular and special investigations and is often referred to as the “grim reaper” of the corporate world due to its focus on major tax evasion cases. While this investigation reportedly began as a routine audit—the first in about five years since 2020—it has since escalated into a special probe following suspicions of large-scale tax evasion.
The investigation is suspected to be linked to allegations that OB Beer evaded hundreds of millions of Korean won in customs duties by underreporting the value of imported malt, a key ingredient in beer production. In late June, some OB Beer employees were indicted in relation to this matter.
Furthermore, it has been revealed that OB Beer employees allegedly received bribes from affiliated vendors, many of which were run by former employees of the company. The investigation is expected to also cover potential corporate tax and income tax evasion stemming from these alleged illicit transactions.
On June 27, the Seoul Northern District Prosecutors’ Office indicted OB Beer CEO Ben Verhaert and nine others for allegedly exploiting Free Trade Agreement (FTA) tariff quota regulations to evade approximately KRW 16.5 billion (approx. USD 12 million) in customs duties during the malt importation process.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
