Seoul: South Korea's tax authorities announced a strategic decision to postpone regular tax audits for foreign companies that expand their investment in the country, aiming to attract more foreign investment. This initiative, which can delay audits for up to two years, is part of the government's broader push to enhance the business environment for foreign enterprises.

According to Yonhap News Agency, the announcement was made by Lim Kwang-hyun, director of the National Tax Service (NTS), during a meeting with the American Chamber of Commerce in Korea (AMCHAM). The measure targets companies planning to increase their investment by at least 10 percent for small enterprises and 20 percent for medium-sized enterprises compared to the previous fiscal year.

The policy is set to take effect on Monday, marking a significant shift in the country's approach to facilitating foreign business operations. Lim emphasized the NTS's commitment to creating a conducive environment for foreign companies to expand their investments and concentrate on their business activities in South Korea.

Previously, such tax audit postponements were primarily available to small enterprises, but the new measure extends this benefit to medium-sized companies as well. This initiative represents the first time that such a measure has been specifically aimed at foreign businesses, reflecting South Korea's proactive stance in attracting international investment.