Incheon Local Tax Delinquents Face Restrictions on Importing Overseas Luxury Goods and Direct Purchases

Advance Notice of Entrusting Delinquent Tax Collection to Korea Customs Service for 487 Delinquents
Seized Items Include Personal Effects, Express Shipments, and General Imports at Customs Offices

Incheon City Hall

[Asia Economy Reporter Park Hyesook] Measures are expected to be implemented to curb the importation of luxury goods from overseas or direct purchases by high-amount and habitual local tax delinquents in the Incheon area.

On the 6th, Incheon City announced that it will entrust the Korea Customs Service with delinquent tax collection for high-amount and habitual delinquents, aiming to seize imported goods.

This is a system where local governments and the Korea Customs Service cooperate to collect delinquent taxes. When high-amount and habitual delinquents enter the country, the Customs Service collects the delinquent taxes by being entrusted with the collection from the local government for their imported goods.

The entrustment for delinquent tax collection targets those whose local tax delinquency amount is 10 million KRW or more and whose names have been publicly disclosed.

In November last year, the city publicly disclosed the names of 496 high-amount and habitual local tax delinquents (65 corporations and 431 individuals). Their total local tax delinquency amounts to 20.2 billion KRW, with the highest amount being approximately 610 million KRW.

Last month, the city sent advance notices demanding local tax payments to 487 of them, and if the delinquent taxes are not paid by this month, which is the deadline, the city plans to entrust the Korea Customs Service with the delinquent tax collection in June.

Once the delinquent tax collection is entrusted to the Korea Customs Service, customs will seize and proceed with the sale of carry-on items, express shipments (items purchased directly from overseas via the internet, etc.), and general imported goods of high-amount and habitual local tax delinquents upon their entry, and remit the collected amounts to the respective local government heads.

However, if more than 50% of the delinquent amount at the time of public disclosure of the high-amount and habitual local tax delinquents' list is paid after the entrustment, the individual will be excluded from the entrustment target.

An official from Incheon City stated, "We will do our best to eradicate malicious high-amount and habitual delinquents through close cooperation with the Korea Customs Service," adding, "Especially through the 'Omega Tracking Collection Team' that has been operating since last year, we will relentlessly pursue and collect from unscrupulous delinquents to realize tax justice."

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