The National Tax Service says it will reduce the number of firms that will be subject to tax audits this year.

Attending a breakfast meeting of business leaders in Seoul Friday, NTS Chief Lee Yong-sup said the number of corporations to be subject to tax investigation by the NTS this year would be about one percent of the total companies.

The tax administrator said the agency also plans to reduce the investigation period in line with its latest policy to cut back on intervention in firms with good tax records.

Lee said the agency would focus this year's tax audits on inducing companies to make honest tax payments rather than imposing penalties on tax evaders.