National Tax Service Launches Special Tax Audit into Seodo Group Chairman Kwon Hyuk, Nation's Top Tax Delinquent

The National Tax Service (NTS) has launched an irregular (special) tax audit into the Korean business office of a company effectively managed by Seodo Group Chairman Kwon Hyuk, known as the "Shipping King."

According to industry sources on June 12, the Investigation Bureau 4 of the Seoul Regional Tax Office sent investigators to the Seodo Shipping Korean office in Seocho-gu, Seoul, on this day to secure accounting books and other materials.

In particular, it is reported that the NTS, having detected evidence of tax evasion (violation of the Punishment of Tax Evaders Act) by Chairman Kwon, obtained a search and seizure warrant from the court and confiscated employees' PCs and mobile phones.

The execution of a search and seizure warrant by the NTS signifies that the agency has initiated a tax crime investigation with the intention of pursuing criminal charges.

This is a more intensive response than a general tax audit, which is typically aimed at collecting unpaid taxes.

Chairman Kwon has been dubbed the "Shipping King" for his active business operations in South Korea, Japan, and Hong Kong since establishing the ship management firm Seodo Merchant Marine in 1990.

However, as of the end of 2024, he was listed among the top high-amount and habitual tax delinquents, with personal arrears of 393.8 billion won and corporate arrears of 520.3 billion won.

He currently holds the number one spot for individual tax delinquency.

On June 5, NTS Commissioner Kang Min-soo met with the head of the tax authority of Liberia, an African coastal nation and a major ship registry country, to sign a Memorandum of Understanding (MOU) on information exchange and cooperation in tax collection.

This move has been interpreted as a measure to collect the delinquent taxes of Chairman Kwon, who is suspected of hiding assets overseas through methods such as changing ship nationalities and utilizing foreign corporations.

In March, President Lee Jae-myung identified high-amount and malicious tax delinquency as one of the "seven abnormalities" in Korean society during a senior aides meeting and ordered an active response to the issue.

Regarding the tax audit of the Seodo Shipping Korean office, the NTS stated, "We cannot confirm information regarding individual taxpayer audits."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.