Asia/Pacific News
SK Shipping Under Investigation as Rumours of Alleged Tax Evasion Swirl
South Korea-based shipping company SK Shipping Co. (SK Shipping) has confirmed that it is the subject of an investigation by the National Tax Service (NTS), although the company has dismissed rumours that it has been involved in tax evasion practices, South Korean media reports.
It is reported that the NTS division that investigates large companies' tax evasion and business corruption cases is conducting the investigation.
SK Shipping has said that the investigation is a regular tax audit, noting that it is cooperating fully with the relevant authorities.
"The tax authorities' move appears to be part of the regular tax audit of our company," said company Hong Chang-hyo, a spokesperson for the company.
"We are giving necessary documents to the tax authorities and are also holding meetings to respond to their questions."
Despite SK Shipping's comments, rumours suggesting that the investigation has been spurred by alleged tax evasion practices still persist, with some market experts reported to have said that the inquiry may be linked to NTS' efforts to fight offshore tax evasion.
SK Shipping is said to have declined comment on whether the investigation was part of the government's initiative to fight offshore tax evasion.
It is reported that SK Shipping has plans to launch a public offering this year, and posted KRW 1.52 trillion ($1.26 billion) in sales and KRW 135.5 billion ($112 million) in operating profits during 2015's third quarter.
The company is said to currently operate a fleet of about 70 vessels, which includes bulkers, tankers, and gas carriers.
