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Asiana Airlines Headquarters (Photo = Asiana Airlines) |
[Alpha Biz= Kim Jisun] Seoul, September 24, 2025 – The Seoul Administrative Court has ruled partially in favor of Asiana Airlines in its lawsuit against the Gangseo District Tax Office, ordering the cancellation of approximately KRW 14.6 billion out of a total KRW 91.3 billion in corporate tax levied on the airline in connection with its 2016 sale of Kumho Terminal shares.
Case Background
In April 2016, Asiana Airlines sold its 100% stake in Kumho Terminal, an express bus terminal operator, to Kumho Enterprise for about KRW 270 billion.
Tax authorities later assessed the shares’ value at KRW 578.7 billion, determining that Asiana had transferred them at an undervalued price.
In 2022, authorities imposed KRW 91.3 billion in corporate tax, applying the “denial of unjust transaction calculation” rule under Korean tax law.
Court Ruling
The court upheld the tax office’s decision to treat the sale as an undervalued transfer and to apply the denial of unjust transaction calculation. However, it struck down the additional penalty tax for “fraudulent underreporting.”
The ruling stated:
“There is no evidence that Asiana Airlines fabricated or falsified the basic materials for corporate tax calculation. Therefore, it is difficult to conclude that the company engaged in active conduct that made tax collection impossible or significantly difficult.”
As a result, the fraud penalty surcharge was deemed unlawful, and KRW 14.6 billion of the tax was canceled.
Related Proceedings
Separately, former Kumho Asiana Group Chairman Park Sam-koo was sentenced on September 18 to 2 years and 6 months in prison, suspended for 4 years, in his appeal trial over allegations related to the undervalued sale of Kumho Terminal shares.
The appellate court overturned lower court convictions for embezzlement and breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes, dramatically reducing his original 10-year prison sentence.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
