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| ▲ An official from the National Tax Service briefs reporters on the results of a tax investigation into unfair stock market practices at the government complex in the central administrative city of Sejong on March 5, 2026. (Yonhap) |
tax agency-stock manipulation
Gov't uncovers 615.5 bln won in hidden income in stock market probe, refers dozens to prosecution
SEOUL, March 5 (Yonhap) -- The national tax agency said Thursday it has uncovered 615.5 billion won (US$420.13 million) in unreported income tied to unfair practices in the stock market, taking action in 46 alleged tax crime cases.
The National Tax Service (NTS) investigated 27 companies and around 200 related individuals from July 2025 through February, focusing on false disclosures aimed at boosting stock prices, controlling shareholders siphoning off company assets and stock manipulation for profit.
After confirming 615.5 billion won in unreported income, the agency collected 257.6 billion won in back taxes and referred 30 cases to the prosecution for further investigation and possible indictment, while issuing penalty notices in 16 others.
In one case, a manufacturing company falsely announced plans to launch new eco-friendly energy businesses and invest nearly 10 billion won in a paper company, with executives fabricating documents to funnel about 3 billion won to the owner.
When the new business was found to be nonexistent, the company's stock price plunged and it was eventually delisted, leaving retail investors with heavy losses. Authorities reclaimed 1.6 billion won, and referred the owner and the company to prosecutors.
"Unfair practices in the stock market undermine investor trust and contribute to the Korea discount," the agency said in a statement. "We will intensify monitoring of abnormal trading patterns and expand investigations to root out such practices, and ensure market transparency and fairness."
President Lee Jae Myung has vowed to crack down on stock manipulation and other illegal acts that disrupt financial markets, repeatedly warning that such crimes "will lead to total ruin."
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