Incheon minors registered as business owners spark tax evasion concerns

Rep. Heo Jong-sik of the Democratic Party of Korea has raised concerns regarding the registration of minors as business representatives in Incheon, suggesting the practice may be used for illegal gift-giving or income splitting to reduce tax burdens.

Data from the National Health Insurance Service reveals that as of July 31, there are 11 minor business representatives in Incheon. Notably, nine of these individuals receive monthly salaries that are identical down to the single won. For example, a 7-year-old and a 9-year-old registered in the real estate and rental industry both receive a monthly salary of approximately 1.73 million won.

The most significant case involves a 16-year-old representative in the real estate sector whose annual income exceeded 220 million won, which is more than 17 times the average salary of a typical minor worker. Most of these minor-led businesses are concentrated in the real estate, rental, and business services sectors. Rep. Heo called for tax authorities to investigate whether these minors are actually participating in management or if the structure is being exploited for wealth transfer.