Gov't opens tax probe into Korean Air on alleged gift tax evasion for owner family
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Regulators from the National Tax Service began a special tax audit at the headquarters office of Korean Air Lines in Gangseo-gu, Seoul on Wednesday afternoon, according to industry sources on Wednesday.
The investigation reportedly focuses on the inheritance tax dues worth 270 billion won ($245.6 million) levied on the Hanjin Group owner family after the death of patriarch Cho Yang-ho in 2019. Some charges related to the airliner also are said to be detected.
The Cho family of four is due to pay inheritance tax, amounting to 270 billion won in total.
The family last year decided to divide up the holdings of late Chairman as recommended by Korean laws – equally for son Won-tae and two daughters and 1.5-time larger for their mother. They have been making the inheritance tax payment since 2019, with a plan to pay the total in six installments over five years.
Hanjin Group Chairman Cho Won-tae took out a total of 40 billion won loan against his Hanjin KAL shares last year in a suspected move to secure funds for the hefty tax bill.
The latest probe came in a surprise as the National Tax Service recently has refrained from initiating probes into companies in the virus-hit industries.
Korean Air received the last tax investigation in 2017. It was a regular probe launched every five years for a conglomerate in Korea.
Shares of Korean Air Lines closed 3.12 percent higher at 32,050 won in Seoul on Thursday.
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