SEOUL, Sept. 16 (Korea Bizwire) — Automobiles worth more than 100 million won (US$84,745) are registered under corporate names more than private individuals, recent data has revealed.
The Ministry of Land, Infrastructure and Transport reported that 51 percent of high-end cars that cost between 100-400 million won were registered as corporate assets as of May, with 62 percent of the cars valued at over 400 million won.
Only 6.1 percent of cars that cost less than 100 million won were owned by corporations.
Recently, corporations have been acquiring an increasing number of high-end automobiles.
In 2019, 87.2 percent of high-end cars worth over 400 million won were registered as corporate vehicles, which was 24.8 percent higher than non-luxury corporate vehicles (62 percent).
Registering high-end cars as corporate vehicles allows for certain tax deductions since all costs to purchase and maintain the vehicle are borne by the company.
The National Tax Service reported a number of cases where corporate budgets were used to buy high-end cars for private use, including a recent case in June where an individual used 1.6 billion won in company funds to buy six supercars for personal use.
Ashley Song (firstname.lastname@example.org)