Last year’s corporate tax entertainment expenses were reported to be 16.2 trillion KRW, a 5.7% increase from the previous year.
According to data submitted by lawmaker Kim Young-jin of the Democratic Party, the corporate tax entertainment expenses (provisional) reported last year amounted to a total of 16.2054 trillion KRW, an increase of 5.7% from the previous year’s 15.3246 trillion KRW.
Of this, corporate card spending at entertainment establishments amounted to 596.2 billion KRW. This was a 4.5% decrease compared to the previous year’s 624.4 billion KRW, but it still approached 600 billion KRW.
The corporate card spending at entertainment venues was 596.2 billion KRW last year, with room salons making up 55% of the total at 328.1 billion KRW. Other expenditures included karaoke bars (125.6 billion KRW) and traditional tea houses (72.3 billion KRW). Corporate cards were also used at dining theaters (53.4 billion KRW) and nightclubs (16.8 billion KRW).
Of last year’s 16.2054 trillion KRW in reported corporate tax entertainment expenses, 11.1354 trillion KRW was recognized as deductible under tax laws. The remaining 5.0701 trillion KRW was classified as non-deductible under tax laws.
Lawmaker Kim Young-jin emphasized the need for tax authorities to consider reducing the deduction limits for business expenses incurred at entertainment establishments, suggesting that companies should also cut unnecessary business expenses and invest in enhancing competitiveness through R&D.
Meanwhile, corporate card spending at golf courses last year was reported to be 2.0585 trillion KRW, a 10% increase from the previous year’s 1.8712 trillion KRW.