"Significant Strengthening of Field Tracking" National Tax Service Launches Special Crackdown on Malicious Tax Delinquents

Over 31,641 Individuals and 13,461 Corporations with Over 200 Million KRW in Tax Arrears for More Than One Year Targeted
Intensive Investigation and Focused Tracking of Asset Concealment to Recover Unpaid Taxes

[Asia Economy Reporter Eunmo Koo] The National Tax Service (NTS) has launched a "special cleanup" targeting chronic tax delinquents who have failed to pay large amounts of taxes for an extended period. It also plans to significantly strengthen on-site tracking of delinquent taxpayers' assets, which had been scaled back over the past two years due to COVID-19.

According to tax authorities on the 7th, the NTS began the "special cleanup of publicly disclosed names" last month.

The NTS publicly discloses on its website the names, ages, occupations, delinquent amounts, and tax categories of high-amount and habitual tax delinquents who have owed national taxes of 200 million KRW or more for over one year. The NTS has started intensive investigations into these publicly disclosed chronic delinquents to identify hidden assets. Through financial analysis and on-site searches, they aim to thoroughly uncover assets transferred under third-party names and recover the unpaid taxes.

Currently, there are 31,641 individuals and 13,461 corporations listed as high-amount and habitual tax delinquents. Among individuals, the person with the largest delinquent amount is Hong Young-cheol, in his 40s, engaged in other gambling and betting businesses, who owes 163.3 billion KRW in taxes and was listed in 2019.

The list also includes former Shindonga Group Chairman Choi Soon-young, who owes 107.3 billion KRW (listed in 2004), former Hansol Group Vice Chairman Cho Dong-man, who owes 71.5 billion KRW (listed in 2013), and former JY Group Chairman Joo Soo-do, who owes 57 billion KRW (listed in 2011). Former baseball players Yoon Sung-hwan (listed in 2021) and Lim Chang-yong (listed in 2020) are also included for failing to pay 600 million KRW and 200 million KRW respectively. Among corporations, Sangil Metal Co., Ltd., located in Seo-gu, Incheon, which owes 87.3 billion KRW in taxes (listed in 2016), has the largest delinquent amount.

The NTS plans to strengthen on-site tracking investigations of high-amount and habitual delinquents this year. Due to COVID-19 restrictions in 2020 and 2021, such investigations were limited, but they will be significantly increased this year. On-site tracking involves NTS staff investigating addresses to check delinquent taxpayers' vehicles and conducting stakeouts and searches to seize hidden cash, gold bars, and other high-value precious metals inside homes. The NTS will also enhance delinquency management by using big data analysis of tax payment histories and asset statuses to suggest efficient enforcement measures tailored to each delinquent.

The focused tracking investigation of 584 high-amount and habitual delinquents, which began in March, will continue. The NTS has detected signs that these individuals, whose total delinquent amount reaches 336.1 billion KRW, have illegally transferred assets to spouses and children or live lavishly driving expensive imported cars without paying taxes.

The amounts collected and seized through searches and investigations of high-amount habitual delinquents by the NTS have been increasing annually: 2.0268 trillion KRW in 2019, 2.4007 trillion KRW in 2020, and 2.5564 trillion KRW in 2021. With the special cleanup of publicly disclosed names, strengthened on-site tracking, and focused investigations on asset concealment, the amount collected and seized this year is expected to increase further.

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