SEOUL, September 24 (AJP) - A recent analysis by Rep. Choi Soo-jin of the People Power Party has raised concerns about Google Korea's potential tax evasion.
The lawmaker's study, conducted in collaboration with Professor Jeon Seong-min of Gachon University, suggests the tech giant significantly underreported its revenue and tax obligations in South Korea.
According to the analysis, Google Korea's declared revenue for 2023 was a mere 365.3 billion won ($270 million), resulting in a corporate tax payment of 15.5 billion won ($11.5 million). However, estimates indicate the company's actual revenue could be as high as 12.1 trillion won ($9 billion), necessitating a tax payment of 622.9 billion won ($461 million).
The discrepancy stems primarily from Google Korea's underreporting of income from advertising, YouTube subscriptions, and app market in-app purchase fees.
These figures are significantly lower than those of domestic competitors Naver and Kakao, suggesting potential tax avoidance.
Rep. Choi has called for increased transparency in the operations of global tech giants in South Korea. She advocates for mandating clear disclosure of domestic revenues by service type to prevent tax avoidance and ensure fair competition in the market.