National Tax Service Investigates 263 Mask Manufacturing and Distribution Companies... 526 Personnel Deployed On-site

If Illegality Is Confirmed, Tax Investigation... Notification to Related Agencies for Imposition of Fines and Penalties

[Asia Economy Reporter Kwangho Lee] The National Tax Service (NTS) has launched a comprehensive inspection of all manufacturing and distribution companies nationwide that disrupt market order by hoarding medical supplies such as masks and evade taxes.

On the 25th, Kim Hyun-joon, Commissioner of the NTS, ordered an urgent inspection of 263 mask-related companies, including 41 mask manufacturers and 222 online and offline distributors who recently purchased masks in large quantities.

This investigation will deploy 526 field agents from local tax offices and tax investigation departments with extensive practical experience.

The inspection will focus on daily production and inventory volumes, sales prices, large-scale transactions with specific individuals, and undocumented transactions of manufacturing and distribution companies.

Specifically, the investigation will cover ▲ unreported direct sales by mask manufacturers ▲ hoarding by manufacturing and distribution companies ▲ sales avoidance and price gouging (selling at high prices after falsely declaring out of stock) ▲ distortion of distribution structures (high-priced sales through large-scale transactions with specific individuals) ▲ distribution disruption activities using brokers and intermediaries via internet cafes and social networking services (SNS) ▲ undocumented mask transactions (undocumented cash transactions, smuggling exports, etc.).

If hoarding, price gouging, or other market disorder and tax evasion are confirmed, the companies will be immediately selected for tax audits and investigations will commence.

Additionally, if illegal activities such as hoarding are detected, related agencies will be promptly notified to impose fines and penalties.

An NTS official stated, "The NTS will take strong measures such as tax audits against those suspected of tax evasion, including hoarding, price gouging, and undocumented transactions, until the mask market stabilizes."