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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Naver and Kakao paid a combined KRW 7 trillion in corporate taxes in South Korea last year, while Google and Meta paid just KRW 25.5 billion—roughly one twenty-seventh of that amount—raising concerns over regulatory disparities between domestic firms and global Big Tech.
According to filings on April 15, Naver and Kakao reported corporate tax expenses of KRW 601.4 billion and KRW 94.7 billion, respectively, in 2025. In 2024, the figures stood at KRW 390.2 billion for Naver and KRW 159 billion for Kakao. Combined tax payments by the two companies have remained in the KRW 500–600 billion range over the past three years.
In contrast, Google Korea and Facebook Korea paid only KRW 18.7 billion and KRW 6.8 billion, respectively, last year. While these amounts rose slightly from the previous year, they remain significantly lower than those of domestic platform companies.
The disparity is attributed to how global tech firms report revenue in Korea. For example, Google Korea lists its primary business as the resale of online advertising products and related support services. Major revenue streams such as YouTube and app marketplace operations are booked through overseas entities rather than local subsidiaries, resulting in lower reported domestic revenue and tax liabilities.
Critics argue that this structure leads to reverse discrimination against local companies and underscores the need for reforms to ensure a more level playing field in taxation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
