South Korea’s tax agency said Tuesday that the amount of taxes declared by individuals involved in “intra-group trading” has reached nearly 190 billion won ($177.4 million).

Intra-group business deals have been cited as a secret measure employed by owners of conglomerates to transfer their wealth to their family without paying due taxes by awarding them business contracts with favorable terms.

Many conglomerates in the country are family owned, with many affiliates of a group headed by family members.

In late 2011, the government revised laws that allow for imposing taxes on individuals and corporations benefiting from engaging in such transactions.

The National Tax Service received voluntary taxation reports from those subject to the changed laws in late July, beginning the process of what would be the first taxation in connection with intra-group transactions. (Yonhap News)