Government Spends 67.4 Billion Won on Ads to YouTube Despite Tax Evasion Concerns

Recent data reveals that in 2023, the South Korean government allocated 67.4 billion won to YouTube for advertising,

Recent data reveals that in 2023, the South Korean government allocated 67.4 billion won to YouTube for advertising, despite growing concerns over Google's alleged tax evasion in the country. The issue has sparked debate over whether it is appropriate for the government to spend taxpayer money on platforms that fail to meet their social responsibilities.

According to the Korea Press Foundation, Google and YouTube received the largest share of government advertising funds in 2023, surpassing major domestic media outlets. The 67.4 billion won spent on YouTube was significantly higher than the funds allocated to other platforms such as Naver and Daum. The surge in government spending on YouTube is attributed to the platform’s wide reach and cost efficiency, making it an attractive option for government agencies aiming to maximize the impact of their limited budgets.

However, this trend has raised concerns in political circles. Google Korea, which operates YouTube, has been accused of underreporting its earnings and avoiding paying its fair share of corporate taxes. In 2023, Google Korea reported a domestic revenue of 3.65 trillion won and paid only 155 billion won in taxes. Yet, estimates from the Korean academic community suggest that Google Korea’s real earnings could be as high as 12.1 trillion won, implying that its tax obligations could exceed 5 trillion won. Comparatively, local tech giant Naver paid over 4.9 trillion won in taxes on a revenue of 9.67 trillion won.

Beyond the tax issues, YouTube has faced criticism for allowing harmful and illegal content to spread on its platform, including fake news, extreme violence, and illicit materials. Critics argue that YouTube’s failure to address these concerns, combined with the lack of cooperation from Google in investigations, makes the platform a poor recipient of government funds.

Despite these criticisms, government institutions continue to prioritize YouTube for its advertising efficiency, drawing further scrutiny over the responsible use of public funds. Lawmakers are now calling for more accountability from Google and for the government to reconsider its advertising strategies until Google complies with tax and social responsibilities.

The increasing allocation of government advertising to platforms like YouTube raises important questions about corporate responsibility and the ethical use of taxpayer money. As discussions continue, it is crucial for the government to strike a balance between maximizing advertising efficiency and holding corporations accountable for their actions. Only by addressing these issues can a fairer and more responsible media landscape be established.