S Korean businesses voice concern over ‘digital tax’
South Korea’s business community expressed concerns on July 2 about a global move toward additional taxes on technology companies that would affect Korean tech giants such as Samsung Electronics and SK hynix.
The Federation of Korean Industries, an organisation that represents the interests of Korean businesses, said in a statement: “We express concerns about the side effects of an agreement on the digital tax announced by the Organisation for Economic Cooperation and Development [OECD].
“It appears that almost all sectors of industries are subject to the tax, which could strain normal operations of businesses that are not related to acts of tax evasion,” the federation said.
The Korean business group said discussions about digital taxes had initially started with the aim of preventing tax evasion by digital service companies.
According to the Ministry of Economy, the OECD announced an agreement on the digital tax, which…
