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Korean Investment in Tax Havens since 2000

Author Moon Jongchol(문종철) Date 2020.06.30 Series
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The attempt by corporations and individuals to evade tax imposition by moving wealth and capital to tax havens has long been a problem for governments and national economies. Tax haven investment for the purpose of tax evasion has been criticized in that it causes distortions in the distribution of wealth, increasing disparities between the rich and the poor. In addition, the capital stock sheltering in tax havens does not contribute to productivity of the economy.
Therefore, governments and international organizations have made efforts to monitor and restrict the flow of capital into tax havens. The OECD began conducting research on tax havens as early as the mid-1980s, and the EU is currently strengthening regulation on capital flows into tax havens. Outside officialdom, non-government organizations part of the tax justice movement are doing their own research and urging governments to take bolder action.