KEPCO under tax probe after 8 years

State-run Korea Electric Power Corp. is currently under a tax investigation as part of the government’s regular probe, sources said Thursday.

This is the first time in eight years that the agency is being probed by the National Tax Service. 

The Seoul tax office regularly conducts tax probes into medium and large-size corporations worth over 50 billion won ($44 million).

The authorities are investigating possible tax evasion when the firm placed construction orders. The probe, launched early last month, will be wrapped up late next month, officials said.

Industry insiders speculated that the probe was launched as KEPCO succeeded in bouncing back into profit in 2013.

The state-run company turned a profit in 2013 with 200 billion won after suffering deficits of more than 10 trillion won from 2008 to 2012.

The company was imposed with a 75.5 billion-won penalty for tax evasion in 2008.

By Lee Hyun-jeong (rene@heraldcorp.com)