Seoul: Tax authorities have announced the launch of an investigation into alleged unfair practices within the stock market, with suspected tax evasion estimated at 2 trillion won (US$1.37 billion).

According to Yonhap News Agency, the National Tax Service (NTS) revealed that 31 companies would undergo tax audits. These include eight firms listed on the benchmark Korea Composite Stock Price Index (KOSPI) and 15 on the secondary KOSDAQ market. The alleged misconduct spans stock price manipulation, tunneling, and operating illegal stock advisories through online chat rooms.

Ahn Deok-soo, a senior NTS official, emphasized that unfair trading in the stock market will lead to increased tax burdens rather than profit. He stated that the agency aims to play a pivotal role in restoring the "Korea premium" in the domestic market.

The investigation's timing coincides with the KOSPI index surpassing the 7,000 mark for the first time, buoyed by gains in big tech stocks amid expectations of rising demand for high-end chips.

The NTS has committed to thoroughly examining the market-disrupting activities of the companies under scrutiny, as well as all related parties and transactions. Should authorities uncover criminal activities under tax law, including evidence destruction or asset concealment, they intend to refer such cases to prosecutors for criminal penalties.