South Korea's Tax Authority Launches Special Audit into Young One Textiles Over Related-Party Transactions

According to Yonhap Infomax, South Korea's National Tax Service launched a special audit into textile company Young One Textiles on July 16, focusing on related-party transactions with its Bangladesh subsidiary TVL. The investigation examines whether the company manipulated prices for services and raw materials to shift profits or evade taxes in dealings with the overseas affiliate.

Activist investor Quad Asset Management raised similar concerns about internal transaction transparency in a shareholder letter sent on June 30, highlighting potential regulatory risks from dealings with foreign entities. The fund has been pushing for governance improvements, share buybacks, and enhanced shareholder returns.