Nike Korea and McDonald's Korea, etc.
Pay Less Tax but Have Higher Tax Exemption Rates
"National Tax Authorities Must Strictly Crack Down on Tax Evasion"
Foreign mega-corporations with total revenues exceeding 5 trillion won were found to pay significantly less corporate tax compared to domestic companies. The tax exemption rates for these companies were also markedly higher than those of domestic firms.
According to data submitted by the National Tax Service to Cheon Haram, a member of the Reform New Party, as of last year, among companies with taxable amounts, the average corporate tax burden for companies with total revenues exceeding 5 trillion won (113 domestic corporations, 18 foreign-invested corporations, and 16 foreign corporations) was 263.9 billion won for domestic corporations, 200.8 billion won for foreign-invested corporations, and 14.1 billion won for foreign corporations, respectively. The total corporate tax amounted to 25.8605 trillion won for domestic corporations, 2.6107 trillion won for foreign-invested corporations, and 1,269 won for foreign corporations. According to 2023 disclosure data, Nike Korea and Hanguk McDonald's, with annual sales of 2 trillion won and 994.6 billion won respectively, had a corporate tax burden of zero won.
The tax exemption rate for foreign corporations was also higher compared to domestic companies. The National Tax Service reported that among corporations earning over 5 trillion won in revenue but paying zero corporate tax (taxable amount 0 won), there were 15 domestic corporations (13%), 5 foreign-invested corporations (28%), and 7 foreign corporations (44%).
Representative Cheon stated, "It is not in line with tax justice that overseas mega-corporations earn trillions of won in revenue domestically yet do not pay a single won in taxes," and emphasized, "Tax authorities must strictly crack down on tax avoidance by foreign companies and eliminate tax blind spots."
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