Foreigners Control Koh Phangan and Koh Samui: 11,426 Companies Identified, Over 67% Owned by Nominees; Commerce Director Orders Crackdown
A government scan of Koh Phangan and Koh Samui found 11,426 foreign-invested companies operating on the islands, with over 67% allegedly using Thai nominees as illegal front owners. Thailand's Commerce Department has launched a crackdown to
On May 8, 2026, Poonpong Nayanaprakan, Director-General of the Department of Business Development under the Ministry of Commerce, announced the launch of a scanning operation targeting legal entities on the famous tourist islands of Koh Phangan and Koh Samui in Surat Thani province. The operation aims to prevent foreign capital from using Thai nationals as nominee representatives, following viral claims that 'foreigners have already taken control of the islands.'
Data from the scan reveals that 11,426 companies with foreign investment operate on Koh Phangan and Koh Samui, accounting for 67.97% of all 16,811 businesses on the two islands. Some of these companies operate legally, while others illegally use Thai citizens as front owners.
The department has prioritized this as an urgent matter requiring concrete enforcement action. It is working proactively with partner agencies that signed a Memorandum of Understanding on April 29, 2026, to prevent and suppress the use of Thai nominees under the concept of 'Heal Economic Wounds, Defeat Nominees,' with plans to prosecute nominee business operators to the fullest extent.
Director-General Poonpong explained that the department has historically prioritized facilitating investment for both Thai and foreign investors over strict business registration oversight, while respecting the good intentions of foreign investors who create jobs and stimulate economic growth. However, some foreign investors have exploited this leniency by using Thai nationals as illegal front owners, causing market distortions and damaging the nation's overall economy.
'From now on, the department will strictly oversee the registration of businesses with foreign investment. Those who invest legally will receive full support as contributors to national prosperity. But those operating in gray areas using Thai nominees to illegally divert profits will face severe punishment as economic criminals undermining the nation,' Director-General Poonpong stated.
Data from the department's scan of Surat Thani province—specifically Koh Phangan and Koh Samui, world-renowned tourist destinations with high risk of nominee business activity—shows that Surat Thani has 21,717 registered companies, with 11,649 (53.6%) involving foreign investment. The top 10 nationalities of investors are: France (2,365 companies, 20%), United Kingdom (1,446, 12%), Russia (1,205, 10%), Israel (1,147, 10%), Germany (608, 5%), China (569, 5%), United States (444, 4%), Australia (335, 3%), Italy (258, 2%), and Belgium (222, 2%).
Koh Phangan has 4,761 registered companies with significant foreign investment involvement.
