It has been pointed out that Netflix is ​​paying less taxes compared to the money it earned in Korea as it transfers a significant amount of money generated in Korea to the headquarters as a commission. There has also been raised a problem that even after making a big hit with Korean content, they are not paying the network usage fee due to the surge in traffic.

Correspondent Kim Ki-tae.


Netflix posted 415.4 billion won in sales in Korea last year.

Of this, 320.4 billion won, or 77%, was paid to Netflix headquarters in the name of commission.

At the same time, Netflix's domestic operating profit margin dropped significantly, and the Korean branch was 2% and 9 times different from the headquarters, which reached 18%.

The successive success of K content, such as Squid Game, which is ranked number one in all 83 countries where Netflix is ​​serving, is contributing to the increase in sales, but Netflix is ​​not revealing on what basis the company adjusts the operating profit ratio of the headquarters and the country in question.

Due to the low operating margin, Netflix paid only 2.1 billion won in corporate tax last year.

The National Tax Service conducted a tax investigation and collected 80 billion won in tax, but Netflix refused to file a lawsuit.

[Yang Jeong-suk / Independent member of the National Assembly (National Assembly overdefense): Netflix is ​​showing the behavior of reducing and avoiding taxes while attributing Korean sales to the profits of its headquarters. To prevent unreasonable behavior, the policy authorities should come up with measures (urgently required)]

Even though Netflix lost a lawsuit asking SK Broadband to pay a network fee for causing a huge burden on the network, it has not even responded to the related negotiations.

[Kang Shin-seop / Attorney at Law Firm Sejong (SKB Legal Representative): Since Netflix first used the SKB network, traffic has increased by about 24 times so far.]

As of the fourth quarter of last year, the share of domestic Internet network by overseas operators such as Google and Netflix is 78.5%.

Unlike domestic companies such as Naver and Kakao, which pay tens of billions of won, they do not pay any network fees.