BHC, South Korea’s top-selling chicken franchise, and Puradak are undergoing special tax audits by the National Tax Service after the agency identified about 1 trillion won ($715 million) in suspected tax evasion across 41 companies. The Seoul Regional Tax Office’s fourth investigation bureau began examining BHC in the middle of this month, while Puradak, the country’s sixth-largest chicken chain by revenue, is also under scrutiny. Both were included in the agency’s list of suspected tax evaders linked to price instability, announced on the 14th. The audits will examine whether reported ingredient and distribution costs were reasonable, whether supplier and related-party transactions were conducted on an arm’s-length basis, and how company funds and family wealth were handled. Allegations involving BHC include charging the owner’s personal spending as franchisee support costs and transferring a profitable Lotte World outlet to a company controlled by the owner’s children without payment. Puradak faces allegations involving nominee-operated outlets, company-funded personal vehicles, undeclared contractor payments and understated income. President Lee Jae-myung also drew attention to chicken pricing after sharing an X article saying broiler prices had dropped 37.7% since March while major chicken prices were unchanged. Confirmed tax crimes, including concealed income through borrowed-name accounts or false tax invoices, would lead to criminal tax investigations.