South Korea’s economy is becoming an inflection point in the global market. The country has developed a Hubspot for the technological forum, with an incredible development in manufacturing software and hardware.
The Korean tech market is stacked up with several increasing start-up companies in the country, ensuring a bright environment in the upcoming days. Unlike startups, the government isn’t getting any economic welfare from the global tech giants. Apple, Google, Meta, Netflix, and other major tech industries haven’t provided anything rightfully theirs. The country has been benefitting less from the tech giants, but also, it doesn’t indicate the fewer sales demographic in the tech platform.
Instead, they’re shifting the profits to their respective countries to boast off the land. At the same time, Korea is infuriated by the low number of taxes paid by the companies. Maybe, this could bring a turnover in the economy of the country.
According to industry analysts, these multi-tech companies make trillions of money in Korea every year; given the profit, they should be paying hefty taxes to the country but pointing out a reasonable yet deniable fact that they haven’t built any manufacturing house or computing servers in Korea. The report delivered by Independent Lawmaker Yang Jung-suk indicates that Apple had failed to pay the overall tax amounts. The company produced only has a quarter of the corporate tax rate to Korea compared to its overall payment rate. The lawmaker juxtaposed the data submitted by Apple to the New York Stock Exchange in 2021 and a report submitted to Korea the same year.
“Apple’s global operating profit margin reached 29.8 percent in 2021, 18.6 times higher than that of Korea, which was 1.6 percent,” Yang said. She further added, “Korean branch’s operating profit ratio to net sales is significantly lower than those of Apple’s other regions 34.8 percent in the Americas, 36.4 percent in Europe, 41.7 percent in China, 44.9 percent in Japan, and 37.2 percent in Asia-Pacific”.