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Hans India
25-05-2025
- Business
- Hans India
Coffee shops, eateries shrinks in Q1 amid sluggish consumption in S. Korea
Seoul: The number of coffee shops, eateries and convenience stores in South Korea is on the wane amid a prolonged economic slowdown and sluggish domestic demand, data showed on Sunday. According to data compiled by the National Tax Service (NTS), 95,337 cafes were in service in the first quarter, down 743 stores from the same period last year, reports Yonhap news agency. It marks the first time the number of coffee shops has declined since record-keeping began in 2018. That year, there were 45,203 cafes before the figure jumped to 53,102 in 2019, 62,916 in 2020, 72,847 in 2021, 85,609 in 2022 and 93,913 in 2023. The number of coffee shops peaked at 96,080 last year before falling this year. The downward trend also applied to restaurant businesses in general, with the number of fast food chains coming to 47,803 in the first quarter, down 180 shops from a year earlier. Korean food eateries and Chinese restaurants saw their numbers shrink by 484 and 268, respectively. The number of convenience stores also slipped 455 on-year to 53,101 shops as of end-March. Industry officials say a large number of retirees who have jumped into various self-employed businesses are closing down their shops due to market saturation and slowing domestic demand. Some also point to large commission fees for delivery platforms as factors burdening business owners. The average sales of small business owners in the first quarter were approximately 41.79 million won (US$30,558), down 0.72 percent from a year earlier, according to the Korea Credit Data (KCD). Meanwhile, the Bank of Korea (BOK) is likely to revise down its gross domestic product (GDP) growth forecast from the current 1.5 percent to around 1 percent or lower at its upcoming rate-setting meeting Thursday, according to a recent Yonhap News Agency survey of seven economists.
Korea Herald
25-05-2025
- Business
- Korea Herald
Number of coffee shops, eateries shrinks in Q1 amid sluggish consumption
The number of coffee shops, eateries and convenience stores in South Korea is on the wane amid a prolonged economic slowdown and sluggish domestic demand, data showed Sunday. According to data compiled by the National Tax Service, 95,337 cafes were in service in the first quarter, down 743 stores from the same period last year. It marks the first time the number of coffee shops has declined since record-keeping began in 2018. That year, there were 45,203 cafes before the figure jumped to 53,102 in 2019, 62,916 in 2020, 72,847 in 2021, 85,609 in 2022 and 93,913 in 2023. The number of coffee shops peaked at 96,080 last year before falling this year. The downward trend also applied to restaurant businesses in general, with the number of fast food chains coming to 47,803 in the first quarter, down 180 shops from a year earlier. Korean food eateries and Chinese restaurants saw their numbers shrink by 484 and 268, respectively. The number of convenience stores also slipped 455 on-year to 53,101 shops as of end-March. Industry officials say a large number of retirees who have jumped into various self-employed businesses are closing down their shops due to market saturation and slowing domestic demand. Some also point to large commission fees for delivery platforms as factors burdening business owners. The average sales of small business owners in the first quarter were approximately 41.79 million won ($30,558), down 0.72 percent from a year earlier, according to the Korea Credit Data. (Yonhap)
![[Contribution] Avoid penalties, claim benefits: How NTS supports foreign taxpayers](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F04%2F30%2Fnews-p.v1.20250430.fd9aa60dd0f14a5e94266e73036dd5a9_T1.jpg&w=3840&q=100)
Korea Herald
01-05-2025
- Business
- Korea Herald
[Contribution] Avoid penalties, claim benefits: How NTS supports foreign taxpayers
By Choi Jae-bong There is a world-renowned football player whose exceptional positioning and goal-scoring prowess have earned him many fans here in Korea. This player, Cristiano Ronaldo, while playing in Spain as a foreign athlete, once drew international media attention not only for his athletic brilliance but also for his tax troubles. He established a shell company in the low-tax jurisdiction of the British Virgin Islands and funneled his advertising income through this entity, significantly reducing the amount of tax he owed in Spain. Eventually, however, the Spanish tax authorities uncovered the scheme, and the football star was fined more than $20 million. The lesson is clear: in football, smart positioning can lead to spectacular goals. But when it comes to taxes, no matter how strategically one positions oneself, everyone is still obligated to pay their fair share in the country where they reside. The obligation to report global income is not based on nationality. In Korea, anyone considered a 'resident' under tax law — defined as having lived in Korea for 183 days or more during the previous year — must report their global income this year. This applies to both Korean citizens and foreign nationals. Any resident who earned income subject to global income tax, such as business income, must file a return by June 2. For many foreign residents in Korea, navigating the tax system can be challenging. Language barriers and unfamiliar legal procedures often put them at a disadvantage when filing their global income tax. In many cases, they may also miss opportunities to reduce their tax burden. For example, starting in 2024, eligibility for tax credits on monthly rent payments has been expanded. However, foreign residents who are unaware of these new rules may miss out on valuable benefits simply because they didn't know they were eligible. To support foreign residents in meeting their global income tax obligations, the National Tax Service has launched a number of practical initiatives. These include publishing an English-language booklet that outlines key tax laws, recent legislative updates, frequently asked questions, and example cases illustrating how to file. The booklet is available on the NTS' official English-language website. Additional resources are also provided, including step-by-step video guides and English versions of global income tax filing forms. Multilingual leaflets with filing instructions are available in English, Chinese and Vietnamese. Beyond these general resources, the NTS is also offering more personalized support for foreign residents. The agency is encouraging eligible foreign taxpayers — especially those who qualify for Korea's 'simplified expense rate' system, which allows small business owners to deduct a fixed percentage of their income as expenses — to take advantage of the 'pre-filled tax return' system. This system provides a pre-calculated tax amount based on data already held by the NTS, reducing the need for paperwork or complex calculations. Foreign residents can simply review the information and submit their returns quickly and easily using the "one-click filing service." In addition, the NTS will identify foreign residents who are likely required to file a global income tax return — particularly those with visa types typically associated with tax obligations who did not complete year-end tax settlement. These individuals may be unaware of their duty to file. To ensure compliance, the NTS will send them reminders. Through these efforts, the NTS is committed to proactive administration that supports foreign residents in filing their global income tax returns accurately and reliably. This includes the use of innovative technologies — such as big data analysis — to identify taxpayers and guide them through the process. As the legendary sports figure Yogi Berra once said, 'It ain't over till it's over.' Likewise, your economic activities in 2024 aren't truly over until you have filed your tax return and paid any tax due. If you are a foreign resident required to file global income tax, please be sure to submit your return by June 2.
Korea Herald
18-03-2025
- Entertainment
- Korea Herald
Yoo Yeon-seok hit with biggest tax bill amid scrutiny over celebrity finances
Recent tax controversies may involve celebrities' use of personal corporations to minimize taxes Yoo Yeon-seok, the star of hit K-dramas such as the "Hospital Playlist" series and "Reply 1994," has joined a list of celebrities facing hefty tax bills. Yoo was recently slapped with a tax bill of approximately 7 billion won ($4.8 million), reportedly the largest ever imposed on a South Korean celebrity. In response to mounting criticism and allegations of tax evasion, Yoo's agency, KingKong by Starship Entertainment, issued a statement on Friday explaining that the tax assessment results from the National Tax Service "stem from a difference in the way (Yoo's) tax representative and the tax authorities have interpreted and applied tax law." The agency further noted, "This income tax assessment has not been finalized or officially notified, and we plan to actively clarify the points of contention regarding the interpretation and application of the law through proper legal procedures." Yoo is not alone in facing scrutiny over tax issues. In February, actress Lee Ha-nee, known for her work in "Knight Flower" and "Extreme Job," was hit with a 6 billion won tax assessment. Last year, actor Park Hee-soon underwent a tax investigation by the Seoul Regional Tax Office, resulting in an additional tax bill of approximately 800 million won. The trend has drawn scrutiny over celebrities' use of personal corporations -- often with themselves as CEOs -- to minimize their tax liabilities. The three celebrities each operate personal corporations despite being affiliated with other agencies — Park Hee-soon, Lee Ha-nee and Yoo Yeon-seok serve as CEOs of Twopark Playground, Hanee, and Forever Entertainment, respectively. Under Korean law, corporations are generally taxed at lower rates than individuals, with higher thresholds for taxable income, making corporate structures more advantageous for tax purposes. Additionally, expenses related to maintenance, vehicle upkeep and other business operations can be deducted as business costs, effectively reducing the owner's taxable income. The celebrities contend that the disputes stem from differing interpretations of tax law rather than deliberate tax evasion, with Park Hee-soon denying the allegations in an official statement, asserting that "This tax assessment arose during the process between the tax authorities and my tax representative and has no direct connection to my legal obligations as an actor." Lee Ha-nee similarly defended her position, stating, "The additional tax resulted from a difference in perspective between the tax authorities and my tax representative, and I have paid the full amount." Public sentiment, however, has grown increasingly critical as suspicions mount over high-profile figures allegedly avoiding billions in taxes. Criticism has been mounting over Yoo Yeon-seok's appearance in Seoul Broadcasting System's new series "Shinyirang Law Office" (direct translation), set to premiere this August, where he plays a lawyer who punishes evil. SBS has yet to release an official statement regarding Yoo's involvement in the series.
Korea Herald
21-02-2025
- Business
- Korea Herald
Temu expands data sharing overseas amid lingering privacy concerns
With its recent plan to directly enter the Korean market, Chinese e-commerce platform Temu has moved to share Korean users' personal information overseas while broadening its network of external data handlers. According to Temu's latest privacy policy update on Friday, the personal information of Korean customers will be entrusted to both domestic and international third-party companies for 'efficient service provision.' Users who refuse to consent to this transfer will be unable to use the platform. In contrast to the earlier policy, where the only mandatory consent was for overseas remittance information, the revised version extends the scope of entrusted data to include personal customs codes, transaction amounts, addresses, phone numbers, text messages, device information, age verification IDs and data collected during service usage. This information will be shared with 27 external companies across six countries, including Korea, Singapore, Japan, Australia, the United States and Indonesia, which will process data on behalf of Temu. Beyond data entrusted for processing, Temu has also expanded the list of third-party recipients who can directly receive user data. Previously limited to the National Tax Service, this list now includes Korean sales partners, aligning with Temu's plans to establish a direct presence in Korea. Yet, concerns remain over Temu's measures to protect personal information and prevent data breaches. In July last year, another Chinese e-commerce platform, AliExpress, was fined 1.9 billion won ($1.32 million) by the Personal Information Protection Commission for leaking Korean customer data to approximately 180,000 overseas vendors without prior notification. Temu faced similar allegations regarding weak data protection measures, but has so far avoided enforcement action due to its relatively short business history in Korea and limited operational records. 'The investigation into Temu is in its final stages, and outcomes are expected to be announced soon,' an official from the PIPC stated.
