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NTS investigates 17 daily necessities companies for alleged price hikes, tax evasion

Published: 27 Jan. 2026, 16:06

Ahn Deok-su, the director of the National Tax Service's (NTS) Investigation Bureau, gives a briefing on the NTS's crackdown plans at the government complex in Sejong on Jan. 27. [YONHAP]

Companies that unjustifiably hiked prices on essential goods to reap excessive profits and evade taxes are now under investigation by the National Tax Service (NTS).

On Tuesday, the NTS launched a probe into 17 companies involved in the production and distribution of daily necessities after uncovering a string of tax evasion cases spanning the past five years and amounting to around 400 billion won ($376 million).

The targets include five firms engaged in price-fixing; six manufacturers and distributors of daily necessities accused of inflating costs; and six food distribution companies that disrupted fair trading practices. Among them are two large corporations and two midsize firms.

These companies not only burdened ordinary consumers through unfair practices but also funneled untaxed income to owners and their families, according to the NTS.

One major food additive manufacturer — a conglomerate producing products such as sugar — is suspected of colluding with competitors to coordinate price hikes. This alleged case of tax evasion alone is estimated at 150 billion won. The company reportedly exchanged fake tax invoices between affiliates and manipulated prices of raw materials to underreport profits. It also allegedly paid excessive maintenance fees to a family-controlled entity and inflated expenses at its U.S. office to cover living costs for the owner’s children.

A hygiene product manufacturer that holds a dominant market position reportedly raised the price of a specific product by 33.9 percent and funneled more than 50 billion won in profits to an affiliated company by overpaying sales incentives, commissions and advertising costs. The suspected amount of tax evasion is also around 150 billion won.

A baby skincare manufacturer is suspected of raising prices by 12.2 percent, citing rising raw material costs, then transferring profits by covering joint expenses and advertising costs for an affiliated firm. Investigators also found that the company filed a trademark under the owner's name, later repurchasing it for tens of billions of won, and recorded the purchase of a luxury sports car and apartment renovations worth more than 200 million won as company expenses.

Sanitary pad packages are seen at a store in Seoul on Jan. 27. [NEWS1]

Another business is being investigated for providing a luxury apartment worth more than 2 billion won, purchased with corporate funds, to the owner's child free of charge.

Additionally, a seafood distributor allegedly inserted a family-controlled affiliate into the supply chain to mark up prices by 33.3 percent and off-load advertising costs to inflate expenses. A deep-sea fishing company is suspected of wiring approximately 5 billion won overseas under the guise of fishing operations and using the funds to pay for the owner's child's education abroad.

The NTS plans to pursue criminal charges under the Punishment of Tax Offenses Act if investigators confirm that the companies committed tax evasion or used fake tax invoices during the probe. This marks the third round of targeted tax audits tied to price stability, following previous rounds in September and December last year.

“We will continue monitoring companies that raise prices on essential goods through unfair practices while underreporting taxes amid soaring inflation,” said Ahn Deok-su, the director of the NTS's Investigation Bureau. “We are committed to correcting corruption, privilege and unfairness to help stabilize prices and support the livelihoods of ordinary people.”

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 JEONG JAE-HONG [[email protected]]