More Than Half Occupied by Room Salons
Last year, the amount of corporate card payments used at entertainment establishments such as room salons reached the 600 billion KRW level.
On the 16th, 'Yonhap News' reported that according to an analysis of data submitted by the National Tax Service to the office of Park Seong-hoon, a member of the People Power Party, the amount of corporate card usage at domestic entertainment establishments last year was recorded at 624.4 billion KRW. This is an increase of 60.6 billion KRW compared to the previous year (563.8 billion KRW).
Entertainment bar. Not related to specific expressions in the article [Image source=Asia Economy DB]
Spending at entertainment establishments accounts for about 0.4% of the total corporate card usage amount (176.5627 trillion KRW). By type of establishment, room salon usage amounted to 340.7 billion KRW, making up more than half. Danranjumeok (131.3 billion KRW) and Yojeong (80.2 billion KRW) followed.
Significant amounts of corporate card payments were also recorded at theater-style restaurants (54.4 billion KRW) and nightclubs (17.8 billion KRW).
The amount of corporate card usage at entertainment establishments exceeded 1 trillion KRW in the early 2010s but began to gradually decrease afterward. In 2019, it dropped to 860.9 billion KRW, and during the COVID-19 pandemic in 2021, it shrank to about 212 billion KRW. However, as social distancing measures have gradually eased, it appears to be recovering to previous levels.
Meanwhile, the business promotion expenses (formerly entertainment expenses) reported by corporations filing corporate tax last year totaled 15.3246 trillion KRW. Business promotion expenses have also been rapidly increasing since the pandemic. In 2021, business promotion expenses were 11.374 trillion KRW, rising to 12.6995 trillion KRW in 2022, and increased by about 30% compared to the previous year last year.
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