South Korea's National Tax Service has notified Coupang of a preliminary tax assessment of around 300 billion won, about 200 million dollars, following a six-month special tax audit. The Seoul Regional Tax Office's Investigation Division 4 recently completed unscheduled audits of Coupang and its logistics subsidiary Coupang Fulfillment Services, covering the 2022 to 2024 fiscal years. The investigation began after a large-scale personal information leak involving 37.55 million people last November, with the NTS focusing on suspected tax issues in transactions between Coupang's domestic headquarters and CFS, as well as possible offshore tax issues involving fund transfers between Coupang, its U.S. entity, and related affiliates. The tax authority also reviewed information management costs claimed as corporate deductions and intends to deny corporate tax reductions granted on the basis of such costs following Coupang's violation of the Personal Information Protection Act. The company has not issued a statement but is reportedly reviewing possible appeal procedures with Yulchon Law Firm and can request a pre-assessment review within 30 days of receiving the notice.
Coupang LLCNTS special audit results in 300 billion won preliminary tax assessment for Coupang.
Coupang Fulfillment Services also audited; tax issues in transactions with Coupang HQ.