The National Tax Service has launched a special tax investigation into Korea Zinc. The probe is being handled by Investigation Bureau 4, which mainly looks into specific suspicions such as corporations' tax evasion, creation of slush funds, and embezzlement, while Korea Zinc said it believes this will be a routine investigation.
According to industry sources on the 6th, the National Tax Service sent agents from the Seoul Regional Tax Service's Investigation Bureau 4 to Korea Zinc's headquarters in Jongno District, Seoul, to secure tax-related materials, including accounting books. This is the first time in five years since 2021 that the National Tax Service has opened an investigation into Korea Zinc.
The industry is watching whether this investigation is related to the earlier probe by the financial authorities. The Financial Supervisory Service began an accounting review of Korea Zinc in Oct. 2024 and shifted it to an accounting inspection in Nov. The inspection examined whether losses from an investment in the private equity fund One Asia Partners were properly reflected in the financial statements, and whether the valuation at the time of acquiring the U.S. waste company Ignio Holding was overstated.
An industry official said, "Investigation Bureau 4 is an organization that mainly handles special investigations when specific suspicions are detected, rather than routine audits," and added, "It is highly likely that agents were deployed today to look into various allegations that arose during the management control dispute with MBK Partners and Young Poong."
In response, a Korea Zinc official said, "As it has been five years since the last routine tax audit, we view this as a routine investigation," adding, "We will fully cooperate with the investigation."