National Tax Service probes 10 contractors over wildfire bidding fraud

  • South Korea's NTS opened investigations into 10 forestry contractors and 41 shell companies.
  • The companies won approximately ₩23 billion across 260 contracts after 6,500 bids.
  • NTS reviewed 5,331 wildfire-project participants before selecting 138 higher-value bidders.

South Korea's National Tax Service has launched tax investigations into 10 forestry contractors and 41 shell companies linked to alleged wildfire-recovery bidding fraud. The companies are suspected of evading approximately ₩70 billion ($51.6 million) through false tax invoices, inflated costs and fictitious salary and labor payments. The NTS reviewed 5,331 companies that participated in wildfire restoration projects through Public Procurement Service tenders over six years, then examined 138 higher-value bidders. The targeted entities took part in about 6,500 bids and won approximately 260 contracts worth ₩23 billion ($16.9 million). Investigators identified networks that repeatedly shifted operations between provinces to bypass regional bidding restrictions, rented forestry licenses instead of hiring required technicians and used nominal representatives to siphon corporate funds. The NTS said it will recover unpaid taxes, trace suspected illicit wealth held by owners' family members and pursue punishment under the Punishment of Tax Offenses Act where applicable.

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