[Sejong = E-Daily Reporter Kim Mi-Young ] It has been confirmed that the National Tax Service (NTS) has filed charges against Coupang in what is the first tax violation case since the launch of the Major Crimes Investigation Agency (MCIA). Coupang is accused of exchanging fake tax invoices between affiliates while accounting for losses resulting from the expansion of its “Rocket Growth” seller logistics service—launched in 2023—and large-scale promotional campaigns.

According to tax and retail industry sources on the 22nd, the National Tax Service filed a complaint with the Serious Crimes Investigation Agency the previous day against Coupang’s Korean headquarters, its logistics subsidiary Coupang Fulfillment Services (CFS), and their respective chief financial officers (CFOs). This marks the first tax violation case filed since the agency’s establishment. However, it is reported that Chairman Kim Beom-seok, Coupang’s founder, was not included in the complaint.

The National Tax Service suspects that Coupang exchanged false tax invoices with Coupang Fulfillment Services to reduce losses incurred while conducting large-scale discount campaigns aimed at expanding “Rocket Growth” and encouraging sign-ups for its paid “WOW” membership service. Coupang, which posted an operating loss of 1.1711 trillion won in 2021, reduced its losses by 1.1345 trillion won the following year and returned to profitability in 2023; however, it is alleged that during this process, the company inflated its revenue and shifted losses to its subsidiaries.

A tax industry official explained, “The practice of exchanging false tax invoices to inflate revenue is typically intended to distort financial statements in order to prevent a decline in stock prices or to avoid being at a disadvantage during fundraising processes, such as securing loans from financial institutions.”

Previously, E-Daily exclusively reported that the National Tax Service had issued a notice of proposed assessment totaling approximately 300 billion won following an unscheduled tax audit of Coupang that lasted about six months starting in December of last year.(July 10 edition of <[Exclusive] Special Tax Audit Concludes After 6 Months… National Tax Service Issues ‘300 Billion Won’ Tax Assessment Notice to Coupang>) An industry official stated, “The amount of back taxes is approximately 295 billion won,” adding, “I understand that during the tax audit, allegations of violations regarding the issuance of tax invoices totaling 100 billion won were confirmed, leading to the case being converted into a tax violation investigation and resulting in the recent filing of charges.” A tax violation investigation is an intensive probe targeting taxpayers suspected of crimes such as fraud, other fraudulent acts, or intentional and organized tax evasion, with the aim of imposing criminal penalties.

It is reported that the National Tax Service coordinated the timing of the indictment, taking into account the need to stabilize the organization’s foundation following the launch of the Central Investigation Agency. In response, Coupang stated, “We have no separate position to offer.”