Seoul: The national tax agency has revealed a significant discovery of 615.5 billion won (US$420.13 million) in unreported income linked to unfair practices within the stock market, resulting in actions taken against 46 alleged tax crime cases.
According to Yonhap News Agency, the National Tax Service (NTS) conducted an investigation involving 27 companies and approximately 200 related individuals from July 2025 through February. The probe focused on issues such as false disclosures aimed at boosting stock prices, misuse of company assets by controlling shareholders, and stock manipulation for personal gain.
The investigation led to the confirmation of 615.5 billion won in unreported income. Consequently, the agency collected 257.6 billion won in back taxes and referred 30 cases to the prosecution for further investigation and potential indictment, while issuing penalty notices in 16 additional cases.
A notable case involved a manufacturing company that falsely announced plans to launch eco-friendly energy businesses and invest nearly 10 billion won in a paper company. Executives fabricated documents to misappropriate about 3 billion won to the owner. Once it was revealed that the new business was nonexistent, the company's stock price plummeted, leading to its delisting and significant losses for retail investors. Authorities managed to reclaim 1.6 billion won and referred the owner and the company to prosecutors.
The agency emphasized in a statement that unfair practices in the stock market erode investor trust and contribute to the "Korea discount." It pledged to intensify monitoring of abnormal trading patterns and expand investigations to eliminate such practices, ensuring market transparency and fairness.
President Lee Jae Myung has committed to cracking down on stock manipulation and other illegal activities that disrupt financial markets, warning that such crimes will lead to severe consequences.