The CBS Nocut News reported on Nov. 27 that a Hyundai Motor employee was entertaining investigators of the Seoul Regional Tax Service during a tax investigation.
According to the media, three investigators from the Seoul Regional Tax Service, which is in charge of regular tax investigations into large companies, visited Hyundai Motor's Ulsan plant around September for a one-night period.
A Hyundai official has reportedly accompanied the investigators on business trips. Some point out that it is inappropriate for an employee of a company to accompany the tax investigators of the National Tax Service. In particular, investigators from the National Tax Service were treated three times during the period with a staff at Hyundai Motor headquarters.
The media said that the three investigators reportedly had dinner with a Hyundai employee for lunch, dinner and the second morning of their business trip, and Hyundai Motor paid a substantial sum of the meal money.
Investigators paid part of the meal, but it was found to be less than the total meal amount and the rest was paid by Hyundai Motor, according to the media.
Hyundai Motor paid about 80,000 won per person, including three meals. This is a violation of the Kim Young-ran Act, also known as the anti-graft law.
Korea Taxpayers' Association pointed out that it was inappropriate for tax officials to be treated with entertainment from a company undergoing tax investigations.
The National Tax Service initiated disciplinary proceedings against the three investigators and excluded them from the investigation work as well as from the Hyundai Motor tax investigation itself.