South korea: South Korea's tax agency announced on Monday that it has initiated investigations into 41 businesses accused of engaging in unfair practices that have contributed to consumer price instability. This move is part of the government's broader efforts to tackle inflation ahead of the Chuseok holiday.
According to Yonhap News Agency, the National Tax Service (NTS) stated that the investigations were prompted by findings of businesses inflating production costs and subsequently passing these costs on to consumers. This investigation encompasses 23 agricultural product retailers, including 11 egg producers suspected of underreporting significant profits.
Additionally, probes are underway for 12 retailers dealing in grain, fruit, and meat. These businesses reportedly received tariff quota benefits but are accused of inflating expenses and underreporting sales. The NTS has also identified potential cost manipulation and irregular accounting practices at 16 food franchises.
The investigation further revealed that South Korea's largest food delivery platform, Baedal Minjok, or Baemin, allegedly evaded approximately 100 billion won (US$74.3 million) in taxes through complex capital transactions with its German parent company. These transactions reportedly involved around 1 trillion won in profits generated within South Korea. Moreover, Baemin is accused of passing marketing and promotional costs to restaurants and supermarkets as commissions and advertising fees.
The NTS emphasized its commitment to monitoring tax evasion schemes, particularly in areas that directly impact people's livelihoods, aligning with the government's initiative to stabilize consumer prices.