YouTubers owed 8.9 billion won in taxes last year. Some lawmakers say they're not paying up.

YouTubers in Korea owe 8.9 billion won in taxes, with audits highlighting concerns over proper income reporting and potential tax evasion.

[JOONGANG ILBO]

Audit targets rose significantly from 22 between 2019 and 2022 to 24 in 2023, followed by 21 in 2024. Taxes levied also grew from 5.6 billion won between 2019 and 2022 to 9.1 billion won in 2023 and 8.9 billion won last year. The average tax levied per person last year exceeded 420 million won.

“We are verifying the accuracy of income reports by YouTubers and taking strict action when tax evasion is suspected,” said the NTS. However, the agency added that it does not track the number of cases or taxes collected specifically related to individual revenue sources such as donations.

The latest audit results only reflect those conducted by regional tax offices. Including audits by local tax offices would likely raise the total.

The National Tax Service building in Sejong is pictured on June 19. [NEWS1]

This year, the NTS investigated 17 entities, including nine internet broadcast operations like Excel-broadcasts, five gambling websites using deepfake technology and three cyberwrecker YouTube channels.

Excel-broadcasts are programs in which internet broadcasters perform sexually suggestive dances or poses based on viewer donations, with support rankings displayed like an Excel spreadsheet to incite competition. Some earn over 10 billion won per year through such programs.

Cyberwreckers are YouTubers who sensationalize or distort incidents involving others for profit.

Democratic Party Rep. Jung Tae-ho of the National Assembly’s Strategy and Finance Committee speaks druing a press conference at the government complex in Jongno District, central Seoul, on June 22. [NEWS1]

YouTubers other content creators must register as business operators and file comprehensive income tax returns if they produce video content on a recurring basis and generate income.

Even donations — including those received via “super chats” — are taxable. All financial transfers made via bank accounts displayed during broadcasts under labels such as “donation” or “voluntary subscription fee” fall under this category.

However, concerns have repeatedly been raised in the National Assembly that some YouTubers are generating massive profits through false information and provocative content without properly reporting their income.

“Recent inspections of individual media creators such as YouTubers have confirmed cases where revenue from donations was not properly declared for tax purposes,” said Rep. Jung. “It is necessary to encourage accurate reporting and prepare policy measures to eliminate tax blind spots.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY JANG GU-SEUL [lim.jeongwon@joongang.co.kr]