S.Korean tax authorities probe Huawei

The National Tax Service is investigating the Korean subsidiary of Chinese smartphone maker Huawei.

The NTS on Monday declined to make detailed comments on the matter, but tax investigators are apparently probing overseas transfers of funds by the Korean office.

The focus of the probe is whether Huawei doctored the transfer price between the Korean office and headquarters in China. NTS investigators want to see if the Korean office exported products to other overseas affiliates at low prices and imported products at prices listed higher than the actual amount to boost the balance sheets of headquarters.

Huawei is the world's No. 3 smartphone maker after Samsung and Apple. The Korean subsidiary employs around 150 staff and primarily offers communications equipment to mobile phone service providers.

Huawei has been at the center of controversy in several countries recently.

Last month, the U.S. government ordered Huawei to reveal a cargo shipment list on suspicion that it violated regulations on exporting products to North Korea.

Huawei CEO Ren Zhengfei is a former People's Liberation Army officer who apparently maintains strong ties with the Chinese military.

(THE CHOSUNILBO)