Lee: "The era when breaking the rules pays is over"...Reaffirms warning that stock price manipulation will ruin you

[The Financial News] On the 5th, President Lee Jae-myung stressed in relation to stock price manipulation and other unfair practices, "The era when people profit by breaking the rules and lose out by following them is over." His remarks came shortly after the National Tax Service released the results of an intensive tax investigation into 27 companies suspected of disrupting the stock market and more than 200 related individuals.
Posting on X (formerly Twitter) the same day, Lee Jae-myung wrote, "This time is different from the past. A government that derives its authority from the people does not make empty promises," adding, "The first goal of this administration is to make it impossible to profit by relying on unfair systems or by going against legitimate government policies."
In a press release issued that day, the National Tax Service announced that it had conducted tax investigations over roughly eight months, from July last year to February this year, targeting so-called "stock market disruptors." As a result, it collected an additional 257.6 billion won in taxes from 27 companies and more than 200 related individuals. The firms under investigation included four companies listed on the Korea Composite Stock Price Index (KOSPI) and 20 listed on KOSDAQ. The National Tax Service said it has referred 30 people suspected of tax crimes to the prosecution service and imposed summary fines on 13 others.
The National Tax Service stated that during the investigation it found indications that these companies had evaded a total of 615.5 billion won in income. According to the agency, they obtained illicit gains through practices such as false disclosures and self-dealing by controlling shareholders, while underreporting or omitting the taxes due on those profits.
By type of violation, the agency said it had imposed 94.6 billion won in additional taxes on nine companies that "boosted their stock prices through false disclosures" and referred 30 related individuals for prosecution. The National Tax Service explained that some firms touted moves into "promising new businesses" in fabricated disclosures, then used paper companies as channels to siphon off funds or engaged in sham transactions to divert corporate assets.
So-called "corporate raider" or "hit-and-run" cases were also included in the probe. The National Tax Service said it investigated eight such companies, levied 41 billion won in additional taxes, and issued a summary fine to one individual. In addition, for 10 companies where controlling shareholders effectively privatized the firm and harmed minority shareholders, the agency collected 122 billion won in back taxes and imposed summary fines on two people.
west@fnnews.com Reporter Seong Seok-woo Reporter