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Photo courtesy of National Tax Service |
[Alpha Biz= Kim Jisun] South Korea’s tax authority has imposed hefty penalties on major food and consumer goods companies, including OB Beer and Binggrae, over large-scale tax evasion tied to price increases that fueled inflation.
The National Tax Service said audits of 53 companies uncovered KRW 3.9 trillion in tax evasion, with KRW 1.785 trillion already levied in additional taxes. The probe targets firms accused of abusing monopolistic or oligopolistic positions to raise prices while underreporting profits.
OB Beer was found to have disguised rebates to retailers as advertising expenses and overpaid fees to related parties, practices linked to a 22.7% product price increase. The company faces roughly KRW 1 trillion in additional taxes. Binggrae allegedly funneled profits to affiliates through inflated logistics costs, contributing to a 25% price hike and resulting in tax penalties exceeding KRW 200 billion. A ramen maker was also assessed about KRW 300 billion.
The tax authority said it will continue with further audit rounds, including a new probe of 14 companies such as Daehan Flour Mills and Sempio Foods, as part of efforts to curb unfair price hikes and stabilize consumer prices.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
