South Korea's tax authority launches probes into 41 firms over price-inflation tactics
The National Tax Service has begun investigations of 41 companies it says inflated costs and shifted the burden to consumers, targeting retailers, food franchises and the delivery platform Baemin.
South Korea's National Tax Service announced Monday that it is examining 41 businesses for practices it deems unfair and contributory to consumer price volatility ahead of the Chuseok holiday. The sweep includes 23 agricultural product retailers, among them 11 egg producers suspected of hiding tens of billions of won in earnings. Twelve grain, fruit and meat sellers that benefited from tariff quotas are also being investigated for inflated cost claims and understated sales.
Sixteen food-service franchise outlets face accusations of irregular accounting and cost manipulation. In addition, the tax agency alleges that Baedal Minjok, the country's largest food-delivery platform, evaded about 100 billion won in taxes through intricate capital moves with its German parent and passed promotional expenses onto restaurants as commissions. Officials said the probes are part of a broader effort to curb inflation and protect household purchasing power.
Why it matters
The investigations target price-setting practices that could be driving inflation and affecting everyday consumers.
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