Over 5,000 Corporate 'Supercars' Exceeding 300 Million Won... Fourfold Increase in 6 Years

Analysis from Jeong Woo-taek's Office: "Tax Benefits Should Be Reduced to Prevent Tax Evasion"

Ferrari is holding a domestic launch event for the 296 GTB, a plug-in hybrid (PHEV) sports car based on rear-wheel drive and equipped with a 6-cylinder engine for the first time in the history of the brand's road cars, on the 20th at Dongdaemun Design Plaza (DDP) in Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Choi Dae-yeol] It has been revealed that the number of 'supercars' registered under domestic corporate names, each exceeding 300 million KRW, has surpassed 5,000 units. There are concerns that many corporate-owned supercars are used for personal purposes while still receiving tax benefits applicable to business vehicles, highlighting the need for system improvements.

According to data submitted by Rep. Jeong Woo-taek of the People Power Party from the National Assembly Budget Office, as of March this year, the total number of imported cars registered under corporate names was 624,741, increasing at an average annual rate of 9.1% since 2016.

Among these, the number of ultra-luxury imported cars registered under corporate names, each exceeding 300 million KRW, was 5,075, showing more than a fourfold (333%) increase over six years.

The number of imported cars registered under corporate names priced over 300 million KRW was ▲1,172 units in 2016 ▲1,560 units in 2017 ▲2,033 units in 2018 ▲2,842 units in 2019 ▲3,532 units in 2020 ▲4,644 units in 2021, increasing at an average annual rate of 32.2%.

Imported cars priced between 200 million KRW and 300 million KRW registered under corporate names also rose more than threefold, from 6,617 units in 2016 to 21,609 units as of March this year, with an average annual growth rate of 25.3%.

Imported cars priced between 100 million KRW and 200 million KRW increased from 74,664 units in 2016 to 146,214 units this year, growing at an average annual rate of 13.7%. Imported cars priced between 50 million KRW and 100 million KRW also rose from 167,820 units in 2016 to 291,269 units this year. However, imported cars priced below 50 million KRW (142,908 units → 158,555 units) showed little change.

Rep. Jeong stated, "In the past five to six years, there has been an increase in registering ultra-luxury imported cars under corporate names, indicating a rise in the use of company funds for personal purposes," and added, "We need to review cases from advanced overseas countries and prepare measures to improve related systems."

In fact, in the United States, tax benefits are generally not applied to vehicles except in very exceptional cases. Specifically, to apply tax benefits for business vehicles, vehicle usage records must be documented according to the Internal Revenue Code (IRC) to claim deductions.

Moreover, leasing a vehicle under a company name does not automatically classify the vehicle as a business asset. The U.S. Internal Revenue Service defines business vehicle use examples as travel between workplaces, business-related errands, meals and entertainment for business purposes, and travel for client meetings.

Germany fully recognizes expenses related to corporate business vehicles as accounting costs but taxes the portion used privately as income tax for the vehicle user. Private use of corporate vehicles is treated as a benefit in kind and included in the taxable income of the person receiving the vehicle.

Similarly, in the United Kingdom, private use of company vehicles is subject to taxation, and in Japan, if executives use corporate assets for personal purposes unrelated to work, income tax is imposed accordingly.

In contrast, South Korea allows deductions for vehicle purchase and operating costs from corporate tax, which has led to frequent cases where individuals use vehicles personally but purchase, lease, or rent them under corporate names to evade taxes.

This content was produced with the assistance of AI translation services.