National Tax Service

Commissioner Sang-Ryule Han Joining AMCHAM Meeting

The National Tax Service of Korea held a meeting with the American Chamber
of Commerce in Korea on Thursday,

January 24, 2008. The meeting was part of the NTS commitment
to recognizing businesses as its valuable

customers, and to creating a tax environment
that companies find comfortable doing business in.

During the meeting, Mr. Sang-Ryule Han, the Commissioner of the National
Tax Service of Korea explained

how the NTS is operated in relation to foreign companies, listened
to attending foreign investors about their tax

issues, and answered to their questions.

Commissioner Han emphasized that Korea’s tax administration should not get
in the way of investment decisions

at a time when Korea is in such a fierce global race
for attracting foreign investors. He also explained how the

revenue body is endeavoring to make
this possible, citing three key principles - enhancement of certainty

in taxes, improvement of
tax services, and minimization of tax interventions for compliant taxpayers.

For better certainty in taxes, Mr. Han said that the NTS was considering
an adoption of an advance ruling system.

Once implemented, a taxpayer asking about tax issues
related to specific transactions before the transactions

would receive answers in advance from
the NTS.

To help upgrade the tax service, the Commissioner pledged that taxpayers,
each of whom is its valuable customers,

will be heard. To that end, he said, the NTS will implement
the Voice of Customer system to improve any problems

detected in tax administration. He
also talked about the NTS’ plans for pursuing Six Sigma quality in tax assessment

to significantly
reduce the number of over-assessments.

On his last note, Mr. Han said while compliant foreign companies will enjoy
the benefits of minimized tax

interventions including suspension of or exemption from tax
audits, any companies attempting to use unacceptable

tax minimization arrangements, etc. would
be the major target of its enforcement activities in accordance with

international standards.

He also stressed that the National Tax Service is committed to continuously
listening to foreign companies

on the spot, which are our "VIP customers," by holding
meetings with foreign chambers of commerce in Korea,

and other associated groups.

The NTS will strive to create a business-friendly tax environment by proposing
changes in tax laws to the

relevant organizations such as the Ministry of Finance and Economy,
while listening to taxpayers and proactively

improving tax administrative problems.

NTS-AMCHAM General Membership Meeting

□Attachment 1 : Speech of NTS Commissioner