The prosecution has launched an investigation into some Internet companies, including NHN Corp., for alleged foreign exchange transaction act violations, such as failing to report foreign investments, sources said Saturday.
Seoul Central District Prosecutor’s Office is looking into NHN Corp. for suspected omission of investment report when its Japanese branch, NHN Japan, bought out Livedoor, a Japanese portal business, in 2010 for 80 billion won ($72 million), reports said.
NHN Corp. is the Internet portal service provider that runs Korea’s largest search engine, Naver. It advanced into Japan in 2000 with online games and expanded to a search service in 2009.
NHN reportedly explained that some of the details appear to have been mistakenly omitted when the local subsidiary made the investments.
Some other online gaming companies are also said to be on the list for the investigation.
Under the Foreign Exchange Transaction Act, which regulates tax evasion and asset concealment in foreign countries, overseas transactions of more than 5 billion won are required to be reported.
The prosecution will summon related officials for further questioning, the reports said.
(
rene@heraldcorp.com)
