Prosecutors Conduct Search and Seizure at Seoul National Tax Service and Woori Bank over Daemyung Construction Tax Evasion Allegations

[Image source=Yonhap News]

[Asia Economy Reporter Ryu Taemin] On the 29th, the prosecution investigating tax evasion allegations against Daemyung Comprehensive Construction (Daemyung Construction), known for its apartment brand 'Luchen,' conducted a search and seizure at the bank involved in transactions.

The Tax Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Min Kyungho) sent investigators to the headquarters of Woori Bank, the Seoul Regional Tax Office, and other locations to secure loan transaction records and past National Tax Service investigation materials. On the 27th, the prosecution also searched Daemyung Construction’s headquarters and affiliated company offices to obtain tax-related documents.

According to the National Tax Service’s tax audit results, Daemyung Construction evaded a large amount of taxes by inflating expenses. Consequently, the National Tax Service imposed a penalty of 20 billion KRW on Daemyung Construction and then reported the case to the prosecution.

Daemyung Construction is also suspected of illegally transferring company shares from founder Ji Seungdong to the third generation of owners. The prosecution is focusing on allegations of corporate tax and comprehensive income tax evasion arising from the illegal gifting and succession process.

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