South Korea’s National Tax Service (NTS) says it has begun tax audits of 50 companies after suspicions that owners and their family members used corporate-owned luxury homes for private purposes, potentially as part of tax evasion schemes. The NTS points to an earlier review in which it found 1,097 of 2,639 surveyed corporate homes—about 42%—were reportedly used privately by owners or their family.
The review focuses on homes larger than 85 square meters and with an assessed value above 900 million won, which are subject to comprehensive real estate holding tax. The NTS says the 50 firms are suspected of tax irregularities totaling 1.9 trillion won and that alleged conduct includes providing residences to owners’ families, maintaining vacation homes for exclusive use, and helping owners avoid multiple-home ownership and lending restrictions. Korea Times also cites examples involving purchases and additional corporate-funded renovations.
Times of India adds that the investigation extends to whether the companies’ owners’ families used overseas properties and whether educational expenses for children were handled through company-related arrangements. While the outlets emphasize tax evasion and regulatory breaches, both describe the same initial NTS audit trigger and the large proportion of homes flagged in the earlier review.
