Tax agency to probe 41 businesses for causing consumer price instability

Seoul, September 14 - South Korea's National Tax Service (NTS) has launched investigations into 41 businesses for allegedly engaging in unfair practices that have contributed to consumer price instability, as the government strives to curb inflation ahead of the upcoming Chuseok holiday. The probe targets 23 agricultural product retailers, including 11 egg producers suspected of underreporting millions in profits, 12 grain, fruit and meat retailers, and 16 food franchises.

The allegations include inflating production costs, passing the burden onto consumers, underreporting profits, irregular accounting practices, and tax avoidance schemes. South Korea's largest food delivery platform, Baedal Minjok or Baemin, is accused of avoiding approximately 100 billion won in taxes through complex capital transactions with its German parent company.

Baemin allegedly passed marketing and promotional costs onto restaurants and supermarkets as commissions and advertising fees. The NTS will continue to monitor tax evasion schemes in areas vital to people's livelihoods, in alignment with the government's efforts to stabilize consumer prices.