Diageo has said that it is appealing against efforts by the South Korean Government to levy extra tax on its previous drinks sales in the country. 

South Korea's customs office is seeking an extra US$189.8m from Diageo, which it says did not pay enough tax on the imported Windsor Scotch whisky brand. According to the Korean Herald, the fine is the largest of its kind imposed by the country's customs on a business.

The fine was originally handed out in October, but Diageo has secured an injunction against it, pending the drinks firm's appeal at court. A Diageo spokesperson told just-drinks this week: “It would not be appropriate to comment further on the specifics of this matter as the whole dispute is currently subject to an appeal in the Korean courts system. We have confidence that the Korean judicial authorities will rule fairly.”

The case is separate from Diageo's recent contre-temps with the US Securities & Exchange Commission concerning its activities in South Korea, India and Thailand. Last year, the SEC used its overseas anti-corruption powers to fine Diageo US$16m for failing to stop its subsidiaries bribing officials in the three markets.