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Photo = Naver |
[Alpha Biz= Reporter Kim Jisun] Naver Reportedly Pays Over 500 Billion KRW in Corporate Tax While Google Only Pays Approximately 15.5 Billion KRW
Naver is expected to pay over 500 billion KRW in corporate tax, while Google is reportedly paying only around 15.5 billion KRW, according to a recent analysis.
In a report titled "Estimated Revenue and Corporate Tax of Foreign Big Tech Companies' Korean Subsidiaries in 2023," prepared by Professors Jeon Seong-min from Gachon University and Kang Hyung-koo from Hanyang University, it was revealed that Google Korea disclosed a revenue of 365.3 billion KRW and a corporate tax expense of 15.5 billion KRW in its audit report for last year. However, the researchers estimated that Google's actual earnings in South Korea amounted to 12.135 trillion KRW, suggesting that the actual corporate tax owed by Google Korea could be as high as 518 billion KRW—33.4 times the amount reported in its audit.
Considering that Naver recorded sales of 9.6706 trillion KRW during the same period, with a reported corporate tax expense of 496.4 billion KRW, it raises concerns that Google Korea is paying disproportionately low taxes. This discrepancy is attributed to Google accounting for most of its revenue through overseas subsidiaries. It is known that revenue generated from app market sales is attributed to Google Asia Pacific in Singapore.
Similar concerns have been raised regarding other foreign big tech companies, which are also perceived to be paying less tax in relation to their actual earnings in South Korea. For instance, Netflix Korea was assessed 80 billion KRW in taxes by the National Tax Service in 2021 for tax evasion allegations and is currently contesting the claim through a tax dispute administrative lawsuit amounting to 78 billion KRW.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
