Samsung Electronics Paid 80% of Last Year's 14.8 Trillion Won Taxes in Korea... 11%P Increase in Share Compared to Two Years Ago

Expanded from 69% to 73% to 80% over 3 years

Paying 80% of taxes but only 16% of sales share

Sales increased by 18% while tax payments rose by 33%

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Samsung Electronics' tax payments worldwide last year increased by more than 3 trillion won compared to the previous year. 80% of the total payments were made in Korea. This is because the amount of taxes paid domestically surged noticeably compared to overseas.

According to Samsung Electronics' '2022 Sustainability Management Report' published on the 1st, the tax and public charges paid to governments worldwide last year amounted to 14.8 trillion won. This is a 33.3% increase from 11.1 trillion won the previous year.

Notably, the proportion paid in Korea was overwhelmingly high at 80%. This means about 11.8 trillion won was paid last year. The share has steadily increased from 69% in 2019, 73% in 2020, to 80% last year. The Americas and Europe accounted for 10%, and Asia only 8%.

Comparing with the sales proportions by region, it is clear that the domestic tax payment share is not small. Sales in the Americas were 97.9 trillion won (35%) and Europe 50.3 trillion won (18%), while Korea accounted for only 44 trillion won (16%). Sales in China also reached 45.6 trillion won (16%), and sales in Asia and Africa excluding Korea and China accounted for 41.8 trillion won (15%).

It is also noteworthy that the tax payment growth rate is faster than the sales increase. Samsung Electronics' sales last year were 279.6 trillion won, up 18.1% (42.8 trillion won) from 236.8 trillion won the previous year, while tax payments increased by 33.3%, nearly doubling. The amount rose from about 8.1 trillion won in 2020 to 11.8 trillion won last year.

Expenditure on labor costs for talent competition was also significant. Samsung Electronics' labor costs last year were 34.6 trillion won, up 11.6% from 31 trillion won the previous year, while the number of domestic and overseas employees was 266,673, down 1,264 from 267,937 the previous year. This is interpreted as a result of raising wages to prevent talent outflow. In April this year, the company also decided to increase average wages by 9%, the highest rate in the past 10 years.

The number of domestic employees increased by 4,796 from 106,330 to 111,126, but overseas employees decreased by 6,060 from 161,607 to 155,547.

The noticeable increase in renewable energy usage is also worth attention. Samsung Electronics' renewable energy usage last year increased by 31% year-on-year to 5,278 GWh (gigawatt-hours). In 2020, the company converted 100% of the electricity used in its business sites in the US, Europe, and China to renewable energy. It has also announced plans to convert business sites in Latin America and South Asia to renewable energy by 2025.

Han Jong-hee, Vice Chairman and CEO of Samsung Electronics, said in the report, "Currently, the world is in turmoil with political, economic, and social instability, and some skepticism about a sustainable future is being raised," but added, "Samsung Electronics will contribute to a sustainable environment and society and will steadily create a path toward a better future."