Seoul City Imposes Exit Bans on 624 High-Value Tax Delinquents Owing Over 30 Million Won, Including Former Shindonga Chairman Choi Soon-young

High-Value Tax Delinquents Subject to Travel Ban for 6 Months if Overseas Asset Concealment Suspected
Unified Travel Ban End Dates Set to June 25 and December 21 Annually to Improve Operations
From March, Travel Ban Also Enforced if Combined Delinquent Amount Exceeds 30 Million KRW in Two or More Districts

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 31st that it has imposed a travel ban as of the 30th on 624 high-amount tax delinquents who have overdue local taxes of 30 million won or more.

The total amount of overdue taxes for those subject to the travel ban this time reaches 117.7 billion won. The travel ban period is until June 25, and it will be extended if necessary.

The travel ban applies to those who have overdue local taxes of 30 million won or more (based on principal tax) without justifiable reasons and are deemed likely to evade tax collection measures. According to the Immigration Control Act, the head of the local government can request a travel ban within six months and can request an extension if further travel ban measures are deemed necessary.

According to the 38th Tax Collection Division of Seoul City, it has been revealed that former Shin Dong-a Group Chairman Choi Soon-young, who lives a luxurious life despite owing tens of billions of won, is also included among those subject to the travel ban.

Seoul City plans to improve the current travel ban system, which has different expiration dates for each delinquent, potentially causing gaps in travel bans, by unifying the travel ban end dates to June 25 and December 21 each year starting this year.

A Seoul City official explained, "By unifying the travel ban end dates for delinquents and implementing batch measures, unnecessary work for investigators is reduced, and more thorough and seamless sanctions are now possible."

Additionally, while previously travel bans were imposed only on those with overdue amounts of 30 million won or more per local government, from this year, due to amendments in local tax-related laws, travel bans can be imposed if the combined overdue amount between the city and autonomous districts or between autonomous districts reaches 30 million won. This measure is expected to be implemented from March.

Along with the travel ban, credit information provision (for overdue amounts of 5 million won or more) and public disclosure of the names of high-amount and habitual local tax delinquents (for overdue amounts of 10 million won or more) will also be applied by combining overdue amounts between the city and autonomous districts or between autonomous districts.

Lee Byung-han, Director of the Seoul City Finance Bureau, said, “Starting this year, by unifying the travel ban periods per delinquent and improving operations, and by imposing administrative sanctions through the aggregation of overdue amounts among local governments following amendments to the Local Tax Act, we will implement more stringent sanctions on delinquents who have cleverly evaded penalties so far, and take tougher measures against high-amount tax delinquents who deliberately avoid their tax obligations.”

This content was produced with the assistance of AI translation services.