Tax authorities in Seoul have slapped Hyundai Heavy Industries with an additional tax of 120 billion won ($104 million), the shipbuilder confirmed Monday.

The National Tax Service recently notified the nation’s leading shipbuilder of its decision to impose the additional tax allegedly on a charges of corporate tax evasion. Its investigation into the country’s top shipbuilder began in April last year. 

Hyundai Heavy Industries’ spokesperson said, “It is true that the company was slapped with 120 billion won in additional tax,” but declined to make further comments.

Along with the shipbuilder, Hyundai Samho Heavy Industries, a shipbuilding subsidiary of Hyundai Heavy Industries, also faces 2.8 billion won in additional tax, according to sources.

Industry watchers said Hyundai Heavy has reportedly appealed against the decision, claiming the tax imposition is too excessive for the company already struggling from major losses for years, affected by the global economic slowdown.

The company saw its shipbuilding orders plunge in first quarter of the year. Its shipbuilding orders earned in January and February are valued at around $1.3 billion, a 48.5 percent drop on-year.

By Shin Ji-hye (shinjh@heraldcorp.com)