An ad soliciting membership is seen outside a BBQ chicken franchise restaurant in Seoul, June 2. Yonhap

Genesis BBQ Group, Korea's representative chicken franchise business, is undergoing a tax investigation by the National Tax Service (NTS), industry sources said.

According to the sources, the NTS' Seoul Regional Tax Office sent a team of investigators to the headquarters of the chicken franchise group in southern Seoul earlier this month to secure an extensive scope of tax-related documents.

It has been reported that the Seoul tax office's 4th Investigation Bureau is in charge of the investigation. The bureau is known for handling irregular and special investigations, and is often referred to as the central investigation bureau of the NTS.

The reason behind the NTS's sudden tax investigation into BBQ is not publicly known, and the NTS has refused to officially confirm whether the investigation is ongoing.

"It is the NTS's policy not to confirm whether an individual tax investigation is being conducted," an NTS official stated.

Genesis BBQ Group also refused to comment on the matter, saying "It is difficult for the group to confirm whether a tax investigation has been initiated."

Although no specific reasons for the tax investigation have been disclosed to the public, industry watchers speculate that the tax investigation may be linked to recent contentious price hikes by the fried chicken giant.

Genesis BBQ Group announced on June 4 an increase in prices for its key products, including Golden Olive Chicken, by 3,000 won ($2.16). This adjustment raises the price of its Golden Olive Chicken Combo to 30,000 won, including delivery fees, sparking significant consumer backlash.

The poultry company clarified that the price hike was unavoidable due to the rising costs of raw materials, the minimum wage, rent and utilities, such as gas.