Korea's finance minister said Wednesday that his country will increase participation in the global movement to cope with base erosion and profit shift (BEPS) issues in a bid to keep pace with global efforts to build a fair taxation system.

BEPS refers to tax avoidance strategies employed by multinational companies that weaken a country's tax base.


Last year, leaders of the Group of 20 agreed to give countries the tools they need to ensure that the so-called Google tax will be levied against multinationals that try to avoid paying their dues in countries where they make profits.

"Korea will help the capacity building in tax administration in Asia and the Pacific and exert efforts to induce more countries to join the BEPS package," Finance Minister Yoo Il-ho said in a congratulatory remark at a high-level dialogue of the United Nations Economic and Social Commission for Asia and the Pacific in Incheon, west of Seoul.

"To this end, Korea will double its efforts for technological cooperation to enhance tax capacity and support establishment of an effective tax system through the Economic Development Cooperation Fund (EDCF)."

The EDCF is Korea's state-run fund launched in 1987 aimed at helping developing and less-developed countries through loans that carry low interest rates.

Yoo said he will help developing countries in the Asia-Pacific region improve their financial capacity and mobilize private sources to join the BEPS package.

"Korea will put its focus on policy advice and capacity building to improve the financial system and institution and to nurture capital markets of developing countries," he said.

According to data by the state-run National Tax Service (NTS) on the 9,532 foreign companies in the country, 4,752 paid zero corporate taxes in 2013 through such tax-dodging means.

Of those that did not pay, 15 may have had annual sales exceeding 1 trillion won ($839 million). (Yonhap)