National Tax Service (NTS) Commissioner Kim Chang-ki, front row sixth from left, applauds with American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim, front row seventh from left, and other participants during a meeting between the NTS and AMCHAM in Seoul, Monday. Courtesy of NTS

The National Tax Service (NTS) will set up a stable and predictable taxation environment that meets global standards so that foreign businesses operating in Korea can concentrate on their business, according to NTS Commissioner Kim Chang-ki.

He made the remark at a meeting with members of the American Chamber of Commerce in Korea (AMCHAM), Monday.

The meeting between the tax office and AMCHAM follows a previous one in September 2022. Around 50 people, including the tax chief and AMCHAM Chairman James Kim, participated in Monday's meeting.

The NTS presented its tax policies to encourage foreign investment as well as its own taxation support measures. The commissioner also listened to the difficulties faced by foreign companies with regard to taxation as well as seeking solutions.

Kim noted that foreign direct investment to Korea marked a record high last year despite global economic uncertainties. Of them, the United States took the highest portion of 18.7 percent, to which the tax chief said that Seoul appreciates U.S. entrepreneurs' deep trust in the Korean market.

He vowed fair taxation where there is no discrimination between domestic and foreign corporations.

AMCHAM, meanwhile, suggested that Seoul expand support in taxation to attract more foreign companies. It also requested speeding up the processing of advance pricing agreements, in which transfer pricing, or the pricing of international transactions between related companies within a multinational corporation, is determined in advance to prevent tax disputes in international transactions.

Kim said that he will continue communicating with foreign businesses, including those from the U.S., reflecting their demands in taxation policies.