Taxmen Admit Broad Media Money Probes

The National Tax Service admitted Monday that it has probed － legally, it insists － the financial accounts of shareholders and senior executives of media companies other than owners and chief executives.

The service said it also ordered financial institutions not to notify the individuals whose accounts were traced until May 7, taking advantage of a legal clause that allows for a delay in notification.

The service admitted the probes in the course of responding to a recent column in the Chosun Ilbo newspaper written by its senior columnist, Kim Dae-choong, critical of the government's ongoing investigation of tax records of media companies.

The National Tax Service has said thus far that its probe was routine and was limited to senior executives who are in charge of the management of the companies. As for notifying the individuals whose accounts have been traced, the tax service has said it did not violate the individuals' privacy since financial institutions are required by law to notify the targets of the investigations.

Although the law calls for that notification to be given immediately, it also allows for a delay of up to six months when the individuals in question appear likely to destroy crucial evidence or to otherwise interfere in the investigation.

"Based on the inheritance law, the government can ask any financial institutions to investigate the accounts of major shareholders," said Chung Jin-taek, a tax service official. "We thought Mr. Kim might delay the investigation if he was notified before tracing his accounts."

by Lee Hyo-joon