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NTS probing Cambodia's Prince Group for tax violations

Published: 03 Nov. 2025, 17:03 Updated: 03 Nov. 2025, 19:21

National Tax Service Commissioner Lim Kwang-hyun delivers opening remarks during the 2025 second-half national tax office heads meeting at the agency's main auditorium in the Government Complex Sejong on Nov. 3. [YONHAP]

The National Tax Service (NTS) has launched a tax probe into the Korean office of Prince Group, a Cambodian business conglomerate suspected of being behind a major scam operation.

Authorities are also investigating a currency exchange business affiliated with another company, called Huione Group, which has been flagged as a possible money-laundering channel.

The announcement was made Monday during a meeting of tax office chiefs at the Sejong government complex, the first such meeting under the new administration. During the session, the NTS outlined its enforcement priorities and direction for future tax administration.

“We will respond decisively to tax evasion that harms people’s livelihoods, including offshore tax evasion and unfair business practices,” said NTS Commissioner Lim Gwang-hyun, who chaired the meeting. “In particular, we intend to conduct a thorough investigation into criminal organizations based in Cambodia.”

A tax audit into a Korean entity affiliated with Prince Group began in late October, according to the NTS. The group reportedly set up a real estate investment advisory firm in a major commercial area in Seoul and hired local sales staff, but failed to report business income or withhold income taxes for employees.

Authorities suspect the group raised billions of won from Korean investors, with some individuals investing up to hundreds of millions of won each. The funds, estimated to total between 2 billion and 3 billion won ($1.4 million and $2.1 million), were wired to an entity in Cambodia.

However, the NTS found no records of actual real estate purchases. Officials believe the company may have disguised remittances as real estate investments to funnel proceeds from phishing scams overseas. They plan to work with relevant agencies to recover the illicit funds.

A Prince Bank building in Cambodia seen on Oct. 19 [YONHAP]

The tax service is also investigating a local currency exchange business linked to Cambodia’s Huione Group. Although it reported exchanging less than 100 million won annually, the NTS estimates its actual transactions exceeded 10 billion won. The probe is focused on unreported commission income and whether the business was used for illegal money laundering.

Also at the meeting, the NTS unveiled its plans to overhaul tax administration using AI. The agency aims to invest heavily to build an AI-powered tax advisory assistant, an AI-based tax evasion detection system and a data processing support tool.

“With our new AI tools, we plan to provide consulting services that match the expertise of a tax professional to help taxpayers navigate complex laws and procedures,” an NTS official said. “We also intend to shift the focus of tax enforcement and delinquency management from humans to AI.”

To that end, the NTS will build a dedicated AI infrastructure using high-performance GPUs and adopt generative AI models tailored to its needs. The agency plans to secure funding swiftly and begin developing the system, with the goal of launching full-scale AI tax administration services by 2028.

The NTS also announced the creation of a new delinquency management task force to review the living conditions of 1.33 million tax delinquents. Based on individual circumstances, it plans to link struggling taxpayers with welfare services and take strict measures against malicious non-payers.

“We must place the public at the center of innovation in tax administration,” said Lim. “Our ultimate goal is to ensure that reforms in tax policy deliver real impact on people’s lives and the economy.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JANG WON-SEOK [[email protected]]