High-income YouTubers under crackdown over unreported earnings

SEOUL, July 14 (AJP) - South Korea’s tax authorities have ramped up enforcement efforts against YouTubers and other online content creators, uncovering widespread tax evasion and imposing billions of won in penalties.

According to data submitted to ruling party lawmaker Jung Tae-ho by the National Tax Service (NTS), audits were conducted on 21 YouTubers in 2024 alone, resulting in 8.9 billion won (approximately $6.45 million) in penalties. The intensified scrutiny reflects growing concern over tax compliance among high-earning online influencers.

From 2019 through 2024, regional tax offices audited 67 YouTubers, levying a total of 23.6 billion won in penalties — an average of about 350 million won per creator. The figures encompass all types of business income, not solely revenue generated through YouTube.

Tax enforcement has accelerated in recent years. While just 22 creators were audited over the four-year period between 2019 and 2022, authorities investigated 24 in 2023 and another 21 in 2024. During that same time, the average penalty per YouTuber rose sharply, exceeding 420 million won last year.

Despite the rise in enforcement, tax authorities acknowledged limitations in tracking specific income streams, such as direct viewer donations. Officials said they do not maintain detailed records distinguishing between forms of income like "super chats" or voluntary bank transfers, which creators often label as "subscriptions" or "gifts."

Regardless of terminology, such donations are taxable under Korean law. “Voluntary” viewer contributions — whether processed through platforms or transferred directly — must be reported as income, the NTS said.

In a sign of broader digital enforcement, the NTS said it had expanded its scope this year to include 17 investigations into other online platforms. These include nine cases linked to sexually explicit broadcasts, five involving deepfake gambling sites, and three YouTube channels accused of spreading defamatory content for profit.

Lawmaker Jung, who disclosed the findings, called for stronger safeguards to address gaps in online income reporting.

“We need to encourage honest reporting and introduce institutional improvements to prevent blind spots in digital taxation,” he said.

Kim Dong-young davekim0807@ajupress.com