Tax agency launches probes into 50 firms over misuse of corporate-owned homes

South Korea's tax agency announced on Tuesday the initiation of tax audits targeting 50 firms suspected of abusing corporate-owned residences for personal gain, as part of ongoing tax evasion investigations. The National Tax Service (NTS) revealed that the audits were prompted by an initial review which discovered that 1,097 out of 2,639 corporate-owned properties - equivalent to 42 percent - were privately utilized by owners and their relatives.

These properties, all exceeding 85 square meters in size and boasting an assessed value surpassing 900 million won, were subject to the real estate holding tax. The NTS highlighted that the 50 companies were suspected of engaging in tax irregularities involving a total of 1.9 trillion won. Allegedly, these companies provided residences to family members, facilitated compliance evasion concerning multi-home ownership and lending regulations, or maintained exclusive vacation homes.

One company reportedly purchased a luxury home in central Seoul for over 20 billion won, subsequently investing an additional 10 billion won from corporate funds into the property. Another firm acquired a high-end home worth approximately 4 billion won in a prestigious section of southern Seoul and permitted its owner to use it as a private residence without registering his residency.

A third company, based in Busan's southeastern port area, bought an apartment valued at around 4 billion won in Seoul for its owner's family, providing it free of charge. The NTS indicated plans to broaden its investigation to include corporate-owned properties abroad that have been given away for free to children studying overseas, along with corporate payments for tuition and living expenses.