April 25, 2024

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[THE INVESTOR] US tech giant Apple is forecast to reap more than 3 trillion won (US$2.56 billion) in revenue in South Korea this year amid criticism that the iPhone maker is stingy in making investments here, according to industry sources on Dec. 12.

The company is expected to sell 2.9 million iPhones, worth 2.3 trillion won, this year in Korea, the home turf of its archrival Samsung Electronics. As of November, the phone sales stood at about 2.6 million units. 

Considering the flagship phone sales that make up almost 75 percent of its income here, Apple is likely to see an estimated 3.09 trillion won revenue and 859.9 billion won in operating profit.

Because Apple runs its Korean branch in the form of a limited-liability company, the company faces little public scrutiny compared to other Korea-based firms.

The company is not obligated to unveil its earnings publicly and is not subject to external audits.

Critics also denounce Apple for being stingy in making investments here.

“Apple is making little contributions in the local market, being reluctant to invest in hiring new employees and improving its customer services,” said an industry source, calling for stricter corporate tax standards that would make foreign companies’ accounting more transparent.

By Kim Young-won (wone0102@heraldcorp.com)