The National Tax Service has slapped UD United Dental with fines worth 9.4 billion won ($8.9 million) for tax evasion, according to industry sources on Tuesday.
UD United Dental, which operates a chain of dental clinics, was found to have dodged taxes for three years between January of 2010 and June of 2012.
The Korean Dental Association confirmed the irregularities, but the UD United Dental claims that they were due a discrepancy in local tax laws and corporate accounting standards.
It also said the company's former CEO Kim Jong-hoon is scheduled to pay an additional 9 billion won of taxes.
The NTS said it would not be referring the company to the prosecution as the dental corporation did not appear to have sought criminal methods to dodge the taxes.
The Health Ministry, however, is expected to seek legal penalties against UD United Dental for violating related laws.
UD United Dental is the nation's largest operator of dental clinits running more than 100 chains in Korea, and nine overseas.