South Korean companies allocated nearly 600 billion won to adult entertainment venues during 2024 through corporate credit cards. Representative Kim Young-jin from the National Assembly Strategy and Finance Committee disclosed these figures based on National Tax Service records. Room salons received 328.1 billion won, representing 55 percent of total adult entertainment expenditures. The spending formed part of broader client hospitality expenses that reached 16.2 trillion won.
Tax regulations allow businesses to deduct certain hospitality costs from taxable income within revenue-based limits. Companies claimed 11.1 trillion won as deductible entertainment expenses, while 5 trillion won exceeded allowable thresholds. The 2024 total decreased slightly from the previous year, when corporate cards funded 624.4 billion won at such establishments.
Kim advocates for stricter deduction rules regarding adult entertainment spending. He suggests that corporations redirect their excessive hospitality budgets toward research and development initiatives. Tax officials confirm that business-related entertainment expenses qualify for deductions only within specific regulatory boundaries.
Tax regulations allow businesses to deduct certain hospitality costs from taxable income within revenue-based limits. Companies claimed 11.1 trillion won as deductible entertainment expenses, while 5 trillion won exceeded allowable thresholds. The 2024 total decreased slightly from the previous year, when corporate cards funded 624.4 billion won at such establishments.
Kim advocates for stricter deduction rules regarding adult entertainment spending. He suggests that corporations redirect their excessive hospitality budgets toward research and development initiatives. Tax officials confirm that business-related entertainment expenses qualify for deductions only within specific regulatory boundaries.
