OnulENM Resolves 80.3 Billion Won in First and Third Tax Risks... Accelerates Financial Turnaround

KOSDAQ-listed company OnulENM has seen the cancellation of tax impositions totaling 80.3 billion won, significantly resolving its longstanding tax risks. With the burden of large-scale contingent liabilities reduced, the company plans to improve its financial structure and accelerate efforts to break into the global telecommunications market, including the United States.

OnulENM recently announced that, following the cancellation of the first tax imposition of approximately 29.6 billion won by the Seoul Regional Tax Office, it also received a final notice that the original disposition for the third tax imposition of about 50.7 billion won, levied by the Yeongdeungpo Tax Office in June last year, has been cancelled.

Previously, tax authorities had determined that OnulENM’s travel business revenue and purchases from 2018 to 2023 were fabricated transactions, and imposed a total of around 110.4 billion won in value-added tax and penalties over three occasions. In June, the company initiated a reinvestigation into the first and third tax assessments following a Tax Tribunal order for review.

With this decision, 80.3 billion won—equivalent to 72.7 percent of the entire tax dispute amount—has been effectively settled. This has significantly reduced uncertainty regarding large tax liabilities for the company.

A nullification lawsuit is currently ongoing for the remaining second tax imposition, amounting to approximately 30.1 billion won. OnulENM expects that, since the second imposition concerns the same taxation period and transaction structure as the cancelled first and third assessments, this latest decision will have a positive influence on the ongoing litigation.

With tax risks resolved, the company’s financial structure improvement is expected to accelerate. OnulENM plans to reverse the previously recognized tax-related provisions and focus on capital expansion and results improvement as a result of the cancellation.

In particular, the company anticipates that with much of the longstanding tax uncertainty removed, its business operations will be positively affected. It explained that this will not only reduce financial burdens but also help secure a foundation needed for new contract acquisitions and business expansion.

OnulENM is also accelerating its entry into the U.S. telecommunications market. The company has laid the groundwork for entering the American antenna market and, as a domestic telecommunications equipment manufacturer, is seeking to expand its orders in global markets.

The company’s strategy is to use the resolution of tax risks as an opportunity to strengthen its core competencies and pursue new business opportunities in the global telecommunications network market centered on the United States.

An OnulENM representative said, “With the early resolution of tax issues and the securing of financial soundness, a significant portion of external uncertainties has been eliminated. Based on our competitive edge as a Korean telecommunications company with a foothold in the U.S. market, we will accelerate our entry into the global telecommunications network market and ensure that our enterprise value is properly recognized.”

This content was produced with the assistance of AI translation services.