The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Sept. 5.
Big tech platforms underpay taxes in South Korea
Big tech platforms, including Google Korea, are reported to underreporting corporate taxes in South Korea. Despite reporting 365.3 billion won in revenue and 15.5 billion won in taxes, Google Korea’s actual revenue is estimated at 12.135 trillion won, potentially requiring 518 billion won in taxes. Similar practices are suspected with Facebook and Netflix, which allegedly use local subsidiaries to minimize tax liabilities. Google Korea claims no “permanent establishment” in South Korea, avoiding domestic tax reporting by locating servers abroad.
S. Korean stocks crash in ‘Black Monday’ repeat
Asian stock markets, including South Korea, Japan, and Taiwan, saw sharp declines of 3-4%, the largest drop in a month, mirroring the “Black Monday” crash from early August. South Korea’s KOSPI fell 3.15%, with significant losses in tech stocks like Samsung Electronics and SK Hynix. This downturn follows concerns over a potential U.S. recession and a possible bubble in the AI sector. With September historically weak for markets, analysts anticipate ongoing volatility linked to U.S. economic uncertainty.
Samsung, SK Hynix seek AI chip partnerships at SEMICON Taiwan
South Korea’s leading memory chipmakers, Samsung Electronics and SK Hynix, made a notable joint appearance at SEMICON Taiwan 2024, marking a shift from previous years when mainly smaller Korean startups participated. Their presence highlights a strategic effort to secure AI memory clients in Taiwan, a key AI chip hub, driven by TSMC’s dominance in contract chipmaking.
Samsung president and head of memory business Lee Jung-bae and SK Hynix president Kim Ju-seon emphasized their commitment to leading the high-bandwidth memory (HBM) market with customized solutions. Samsung aims to re-enter the sixth-generation HBM market, while SK Hynix focuses on strengthening its alliances with Nvidia and TSMC to meet future AI chip needs.
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