Employees take part in a ceremony at the dealing room of Hana Bank in Seoul, Wednesday, to celebrate the benchmark Korea Composite Stock Price Index having risen over the 7,000-point mark for the first time in early trading. Korea Times photo by Shim Hyun-chul
Tax authorities said Wednesday they will launch an investigation into unfair practices in the stock market, with suspected tax evasion estimated to reach 2 trillion won ($1.37 billion).
A total of 31 companies will be subject to tax audits, including eight firms listed on the benchmark Korea Composite Stock Price Index (KOSPI) and 15 on the secondary KOSDAQ market, the National Tax Service (NTS) said.
The alleged violations include stock price manipulation, tunneling and the operation of illegal stock advisories through online chat rooms, the NTS said.
"No one will be able to make a single benefit through unfair trading in the stock market, and such actions will only result in a heavier tax burden," said Ahn Deok-soo, a senior NTS official. He added that the agency will take a leading role in helping the domestic market restore what is known as the "Korea premium."
The investigation comes as the KOSPI index surpassed the 7,000 mark for the first time ever Wednesday, driven by gains in big tech stocks amid expectations of rising demand for high-end chips.
The NTS said it will thoroughly examine not only the market-disrupting activities of the companies under investigation but also all related parties and transactions involved.
If authorities uncover criminal acts under the tax law, such as evidence destruction or asset concealment, they plan to refer the cases to prosecutors for criminal punishment.
Source: Korea Times News
