WEST PALM BEACH, FL (www.hedgeco.net) – A Korean civic group is calling on the Korean Government to institute special taxation for foreign based hedge fund companies doing business in the country,such as the Lone Star and Newbridge Hedge Fund firms according to the report. The call was made by the firm called Spec Watch Korea, in a special news conference from the country�s top tax office.
According to the group, Newbridge Capital made significant profit from selling Korea First Bank (KFB), however, the group contends that the firm did not pay any form of taxes to the country. Newbridge Capital sold �KFB, South Korea’s eighth-largest lender, to British-based Standard Chartered Bank for 3.4 trillion won on Jan. 10,� netting a profit of about US$1.16 billion, according to the report.
The group also charged that “The government did not impose taxes on the Carlyle Group and Lone Star either, which had unfair profits of 600 billion won and 300 billion won, respectively.� Both firms realized significant profits from recent sales in Korea without paying taxes according to published reports.
Han Jeong-hee, general manager of the Korean trade organization said “If the government does not impose taxes on those speculative forces, we will take legal action against them.�
It is unclear if the government will act in accordance with such requests. Korea has seen increasing hedge fund activity in the country, and the country wants to continue to attract more hedge funds in its bid to compete with other countries in the region such as Hong Kong, Japan and Singapore.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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