K-Pop’s most powerful label and producer, SM Entertainment, has been ordered to pay an additional 10.2 billion KRW in corporate taxes following a tax audit into the company by the National Tax Service earlier in March.
In a official press release today, SM Entertainment explained that the 10.2 billion KRW (~10 million USD) additional tax payment is due to the foreign tax payment credit difference for SM Entertainment Japan. In an effort to appease concerns over such a large withdrawal of money from the company funds, SM Entertainment stated that it is seeing this as an opportunity, rather than a burden, to create a more stable global business in the future. “Through this tax audit, we will continue to build our company, the foremost entertainment company in Korea, as a transparent and exemplary business.”
SM Entertainment also emphasized that this tax audit revealed there was no tax evasion on the part of the company in regards to their overseas business and income from concerts. It was also found that there was no support for suspicions regarding SM Entertainment’s overseas real estate.