South Korea Tax Authority Probes Seventeen Daily‑Necessities Makers for 400 Billion‑Won Evasion
Updated (2 articles)
National Tax Service Launches Investigation Into Daily Necessities Producers The NTS announced on Jan 27 2026 it is probing 17 local firms that manufacture items such as sugar, sanitary pads, and skin‑care products. The probe targets alleged profiteering and systematic tax evasion. Officials say the investigation will scrutinize pricing and accounting practices across the sector [1].
Alleged Tax Evasion Totals Approximately 400 Billion Won NTS estimates the companies avoided about USD 276.3 million over five years. The evasion figure derives from inflated prices and illegal deductions. Authorities claim the scheme undermined fiscal revenue and consumer trust [1].
Unfair Pricing Tactics Include Sharp Sanitary‑Pad Price Increase One producer raised a pad’s price by 33.9 percent, according to the agency. The increase contributed significantly to the overall evasion amount. Investigators view the hike as a deliberate profit‑maximizing move [1].
Investigators Accuse Firms of Channeling Profits to Relatives The probe alleges certain companies transferred gains to family members, violating tax law. Such private‑benefit schemes are considered illicit under Korean regulations. NTS plans to trace these transactions and recover illicit proceeds [1].
Tax Authority Commits to Ongoing Monitoring of Price‑Inflating Practices NTS announced it will continue surveillance of businesses that raise essential goods prices. Officials emphasized protecting consumers from unfair cost burdens. The agency will expand audits if further violations emerge [1].
Timeline
Early Dec 2025 – President Lee Jae Myung orders government officials to investigate unusually high sanitary‑pad prices, saying they far exceed prices in comparable markets[2].
Dec 23 2025 (Tue) – The Fair Trade Commission dispatches investigators to the headquarters of Yuhan‑Kimberly, LG Unicharm and Cleanwrap to examine how the three firms set pad prices[2].
Dec 24 2025 – The FTC formally launches a probe into the three major sanitary‑pad manufacturers for possible price‑rigging and anti‑competitive behavior, noting that no charges have been announced yet[2].
Jan 27 2026 – The National Tax Service announces a tax‑evasion investigation into 17 producers of daily necessities—including sugar, sanitary pads and skin‑care products—alleging they avoided roughly 400 billion won (≈ USD 276 million) over five years[1].
Jan 27 2026 – The NTS cites specific unfair pricing tactics, such as a 33.9 % price hike on a sanitary‑pad product, and alleges some firms channeled gains to family members in violation of tax law[1].
Jan 27 2026 – The agency pledges ongoing monitoring and further investigations of businesses that inflate prices of essential goods, emphasizing its commitment to protect ordinary citizens[1].