Suwon City Collects Delinquent Payments Through Nation's First 'Subrogated Mortgage Auction'

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Suwon City in Gyeonggi Province has achieved success in collecting the full amount of delinquent local taxes by conducting a subrogation auction on real estate mortgage liens set by tax delinquents.

This is the first case nationwide where Suwon City collected delinquent taxes through a subrogation auction involving mortgage liens.

On the 25th, Suwon City announced that it investigated and seized the real estate mortgage lien set by Mr. Kim, who owed 284.9 million KRW in local taxes, to secure his own claims. After consulting with the Suwon District Court and based on a minority opinion that "subrogation auction is theoretically possible," the city filed for a subrogation auction with the court and successfully collected the full amount of the delinquent taxes.

Previously, Suwon City has been collecting delinquent amounts from high-value tax delinquents with seized real estate by deeply analyzing the registration rights of long-term unexecuted seized real estate through the "Real Estate SHAKE UP" technique.

The Real Estate SHAKE UP method uses specific financial information (FIU data) to verify collusive false registrations (declarations made falsely in agreement with the other party) by delinquents, reexamines interests and rights from the ground up, secures valid claims, and utilizes expertise to turn seized real estate into "profitable real estate."

As of April 1 of this year, there are 3,979 cases of seized real estate, of which 68% have been long-term (over 4 years) written off as uncollectible due to "no profit."

Additionally, the number of delinquents subject to the Real Estate SHAKE UP is 2,289 (3,979 cases), with a total delinquent amount of 13.212 billion KRW.

A Suwon City official stated, "We are continuously developing new collection techniques to convert long-term unexecuted seized real estate written off as uncollectible into profitable real estate," adding, "We will take the lead in realizing tax justice by securing tax claims of insolvent delinquents and suspending the statute of limitations."

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