South korea: South Korea's tax agency announced Tuesday the initiation of tax audits on 50 companies, suspecting that their owners and family members exploited corporate-owned luxury homes for personal use, potentially as part of tax evasion strategies. The National Tax Service (NTS) revealed that these audits follow an earlier review indicating that 1,097, or 42 percent, of the 2,639 corporate-owned homes surveyed had been used privately by owners and their families.

According to Yonhap News Agency, the review specifically focused on homes exceeding 85 square meters in size and valued at over 900 million won (approximately US$651,000), subjecting them to the comprehensive real estate holding tax. The NTS identified suspected tax irregularities among the 50 companies, involving a total of 1.9 trillion won.

The companies allegedly facilitated private residencies for owners' families, circumvented multiple-home ownership and lending regulations, or maintained vacation homes for exclusive use. One highlighted case involved a company purchasing a luxury home in central Seoul for more than 20 billion won, with an additional 10 billion won spent on corporate-funded expansion and interior enhancements.

Another instance involved a company acquiring a high-end home valued at around 4 billion won in a prestigious area of southern Seoul, allowing the owner to use it privately without registering residency. Additionally, a company based in Busan purchased a 4 billion won apartment in Seoul for the owner's family, providing it rent-free.

The NTS announced intentions to broaden the investigation to include corporate-owned homes overseas, which might have been provided free of charge to owners' children studying abroad. This expansion will also scrutinize corporate payments covering tuition and living expenses.