The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Business
  • Tech
  • Bio
  • Companies
Sun, May 29, 2022 | 08:24
Tech
Apple called on to pay W55 bil. in corporate taxes
Posted : 2021-10-05 17:09
Updated : 2021-10-05 17:33
Print Preview
Font Size Up
Font Size Down
Apple's logo is seen on an Apple Store in New York / AP-Yonhap
Apple's logo is seen on an Apple Store in New York / AP-Yonhap

Regulator chief vows to supervise platform firms

By Kim Bo-eun

A lawmaker is claiming that U.S. tech giant Apple's local subsidiary should pay up to 55 billion won in corporate taxes from iPhone advertising costs it forced on local mobile carriers.

According to Rep. Jang Hye-young of the social democratic minor opposition Justice Party, Tuesday, Apple is estimated to be required to pay 36.6 to 55 billion won in corporate taxes for advertising costs it made telecom service providers pay for. The figures were calculated by accounting experts based on data from the Korea Fair Trade Commission.

The industry estimates that the costs Apple Korea made local mobile carriers pay amount to 20 to 30 billion won, for which Apple needs to pay 28.8 billion to 43.2 billion won in corporate taxes. But the total amount of corporate taxes the company should pay comes to 36.6 billion to 55 billion won when including additional taxes that have been imposed for failing to report the corporate taxes that it is required to pay.

According to local regulations, when a company receives funds for an advertisement, it needs to record them under "gains from assets contributed" and pay corporate taxes on these gains.

Apple Korea sent invoices calling for the telecom firms to pay for iPhone and iPad advertising costs and made the companies produce the advertisements. The tech firm also made them pay for the costs of repairing iPhones and iPads.

Rep. Jang said that the amount of corporate taxes Apple's local subsidiary needs to pay will be greater when adding up the repair costs telecom companies were forced to bear.

"Apple Korea has been investigated by the Korea Fair Trade Commission for unfair practices against local mobile carriers, and the National Tax Service needs to collect the corporate tax Apple Korea did not pay through inspections, amid these circumstances in which the company has made gains," Rep. Jang was cited as saying.

"Taxes should be imposed on the company for gains made from passing promotional expenses onto partner firms via having abused its dominant status in business relations."

Korea's antitrust regulator in 2016 initiated an investigation into Apple Korea for passing on advertisement and repair costs to telecom companies.

In February, Apple finalized a plan to make 100 billion won in contributions to society by setting up an R&D center for small-and medium-sized enterprises and establishing a developers' academy to foster talent.

Apple's logo is seen on an Apple Store in New York / AP-Yonhap
Korea Communications Commission Chairman Han Sang-hyuk speaks at the National Assembly's audit of the agency, at the Assembly in Yeouido, Seoul, Tuesday. Yonhap
"Apple already dealt with the issue. It drew up a plan and is following through with it," an industry source said. Apple and telecom firms declined to comment on whether the smartphone vendor stopped asking for advertising costs to be paid.

Korea Communications Commission (KCC) Chairman Han Sang-hyuk, meanwhile, vowed to set up regulations for big tech platform companies such as Google and Apple.

"We will seek to set up online platform-related regulations to ensure fair market competition and protect users," Han said at a National Assembly audit of his agency, Tuesday.

These remarks come after regulations were revised in August to ban Google's and Apple's app stores from forcing app developers into using the app store's payment system. Han said that the agency would have details of the revised regulations laid out so that they could be enforced without delay.

The KCC chief also said that the agency is communicating with Google and Apple on conforming to these revisions and pledged to ensure that app developers are notified of the latest changes to the law.


Emailbkim@koreatimes.co.kr Article ListMore articles by this reporter
 
  • Korean Mental Health: Stranger Things
  • Dutch Korean artist's project: The Mother Mountain Institute of Sara Sejin Chang
  • S. Korea's new COVID-19 cases below 20,000 for 3rd day as pandemic slows
  • Why Mario Outlet founder keeps buying houses of former presidents
  • KOICA launches interactive town in metaverse for overseas volunteer program
  • Union agress to resume late-night subway services in Seoul starting next month
  • 'Russia needs huge financial resources for military operations'
  • Former rhythmic gymnast Son Yeon-jae to wed in August
  • Uvalde school police chief faulted in shooting response
  • Regional banks' declining offline business casts doubts over relocation plan of Seoul firms
  • Korean films make splash at Cannes Film Festival Korean films make splash at Cannes Film Festival
  • From BTS to TWICE's Nayeon, K-pop hotshots prepare June releases From BTS to TWICE's Nayeon, K-pop hotshots prepare June releases
  • How did BTS become beacon of diversity and inclusion? How did BTS become beacon of diversity and inclusion?
  • K-pop band BTS and Biden to meet to discuss Asian inclusion, discrimination K-pop band BTS and Biden to meet to discuss Asian inclusion, discrimination
  • For new cultural policy for hallyu For new cultural policy for hallyu
DARKROOM
  • 75th Cannes Film Festival

    75th Cannes Film Festival

  • People in North Korea trapped in famine and pandemic

    People in North Korea trapped in famine and pandemic

  • 2022 Pulitzer Prize: Bearing witness to history

    2022 Pulitzer Prize: Bearing witness to history

  • Worsening drought puts millions at risk

    Worsening drought puts millions at risk

  • Our children deserve the best

    Our children deserve the best

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group