South Korea Steps Up Scrutiny of Foreign Investment

As part of a continued crackdown on perceived tax evasion by foreign investors, South Korean authorities announced investigations into General Electric (GE) and Mercedes Benz, while a South Korean tax court ruled against U.S.-based Lone Star Funds in the latest chapter of a long-running dispute. The two new investigations, both of which involve alleged underpayment of South Korean taxes, come amidst increasing popular pressure to reign in abusive foreign investment – and amidst increasing international concern that South Korea has become a hostile jurisdiction for such investors … [more]