It has been confirmed that Kang Min-su, the nominee for Commissioner of the National Tax Service (NTS), had his father-in-law and brother-in-law selected as exemplary taxpayers while he was serving as the Director of the Tax Collection and Legal Affairs Bureau at the NTS. Concerns have been raised about whether there was a conflict of interest in the process of selecting exemplary taxpayers.
On the 12th, Cheon Ha-ram, a member of the Reform New Party, announced based on NTS data that two companies owned by Kang's in-laws were selected as exemplary taxpayers twice in the past four years during Kang's tenure at the NTS in March 2020. According to Cheon’s office, Yuchang Co., Ltd. received the Minister’s Commendation for Exemplary Taxpayer in 2020, and Yuchang Ganggeon Co., Ltd. received the Tax Office Chief’s Award for Exemplary Taxpayer in 2021. Yuchang Co., Ltd. had Kang’s father-in-law and brother-in-law as co-CEOs, and Kang’s spouse served as an inside director. Yuchang Ganggeon Co., Ltd. had Kang’s brother-in-law as an inside director.
Cheon’s office explained, "Exemplary taxpayers are granted special privileges such as a three-year exemption from tax audits (two years for awards below the regional commissioner level) and the ability to choose the timing of regular audits."
Taxpayers who meet objective selection criteria undergo a step-by-step verification process by tax offices and regional offices, and their merits are posted on the NTS website for public verification, ensuring a fair and transparent selection process.
Cheon stated, "The Tax Collection and Legal Affairs Bureau and the Corporate Taxation Bureau at the NTS are among the most influential departments overseeing the tax compliance of countless companies and individuals in South Korea. We will rigorously verify through the confirmation hearing whether the nominee sees no conflict of interest in his in-laws receiving the exemplary taxpayer award twice, which comes with numerous benefits."
In response, the NTS said, "The nominee has never improperly exercised influence in the course of performing his duties," and added, "More detailed information will be sincerely disclosed during the personnel hearing Q&A process." Furthermore, regarding exemplary taxpayers, the NTS stated, "Taxpayers who meet objective selection criteria undergo a step-by-step verification process by tax offices and regional offices, and their merits are posted on the NTS website for public verification, ensuring a fair and transparent selection process."
The National Assembly’s Planning and Finance Committee is scheduled to hold a confirmation hearing for nominee Kang on the 16th.
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