Suwon-si Collects Over 500 Million KRW in Arrears by Handling Bad Debt Real Estate and Others

Suwon City Hall

[Asia Economy Reporter Lee Young-gyu] Suwon City in Gyeonggi Province achieved a result last year by collecting over 500 million KRW in delinquent taxes through a new collection method that converts long-term unexecuted seized real estate, which had no practical benefit, into "seized real estate with practical benefit" by analyzing the interests and rights involved and discovering its value.

On the 7th, Suwon City announced that it meticulously reviewed data on unexecuted seized real estate that had been written off as bad debt and was practically worthless, identified delinquent taxpayers without fixed residences one by one, set up "tax payment guarantees," and secured priority to collect 320 million KRW in delinquent taxes.

In addition, the city reanalyzed the registered rights of seized real estate previously judged as "not subject to public auction," collecting 80 million KRW in delinquent taxes, and sent advance notice letters of "subrogation registration" to delinquent taxpayers who had not filed inheritance reports, resulting in the collection of 95 million KRW, the city added.

Subrogation registration refers to registration performed by a creditor on behalf of the registered right holder or the obligated party.

A city official explained, "We found each delinquent taxpayer whose address was uncertain due to bankruptcy or disappearance, continuously persuaded them to change their minds, set tax payment guarantees on eight parcels of real estate owned by 12 delinquent taxpayers, and proceeded with public auctions to collect 320 million KRW."

The city is currently promoting additional public auctions on eight parcels, and expects the amount of delinquent tax collection to increase once the auctions are completed.

Meanwhile, despite difficulties in face-to-face collection activities due to COVID-19 last year, the city achieved a collection of 42.7 billion KRW in delinquent taxes. The collected amount includes 26.1 billion KRW in local tax delinquencies and 16.6 billion KRW in non-tax revenue delinquencies.

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