"No Money to Pay Fines?"... Gyeonggi-do Investigates Rental Deposits, Collects and Seizes 9.2 Billion Won

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province conducted a full investigation of lease deposits held by defaulters who refuse to pay fines and other charges, claiming they have no money, and identified high-value tenants, collecting and seizing 9.2 billion KRW in unpaid taxes.

During the investigation, the province discovered 16 vulnerable defaulters living in jjokbangchon (small rooms) and goshiwon (small dormitories) and connected them to welfare programs for support.

From April to August, the province investigated lease deposits of 130,000 defaulters with outstanding non-tax revenue of over 500,000 KRW.

Local non-tax revenue refers to self-generated income collected by local governments for administrative purposes, including usage fees, service charges, and levies.

The province confirmed approximately 1.1522 trillion KRW in lease deposits held by 24,782 people (with unpaid taxes totaling 90 billion KRW), sent pre-collection notices to defaulters, and collected 3.8 billion KRW from 1,748 of them.

Subsequently, focusing on high-value defaulters who have the ability to pay but refuse to do so, the province conducted home searches to verify actual living conditions and seized deposits worth 5.4 billion KRW from 804 individuals. The seized deposits will be collected by the local government through landlords upon termination of lease contracts.

In a key case, Mr. A, who owed 220 million KRW in fines, had delayed payment for years citing personal financial difficulties. However, the investigation revealed he was living in a lease with a deposit of 1.5 billion KRW. After receiving the province’s pre-collection notice, he paid the full amount owed.

Mr. B, who owed 210 million KRW in fines, had refused to pay due to dissatisfaction with the fine imposition. The province’s investigation confirmed he was living in a lease with a deposit of 1 billion KRW. Mr. B promised to pay the full amount by the end of the year through installment payments.

The province explained that the investigation process included not only collection efforts but also identifying vulnerable groups.

During the lease deposit investigation, 16 defaulters living in jjokbangchon or goshiwon were found and connected to relevant local government departments to receive necessary welfare support. These 16 defaulters owed a total of 63 million KRW.

Field surveys by the delinquent management team additionally identified 275 vulnerable defaulters unable to pay, and their unpaid taxes totaling 690 million KRW were deferred or written off.

For example, Mr. C, who was in such poor financial condition that he neglected his car and accumulated 3 million KRW in fines for delayed vehicle inspections, was found to have a 2 million KRW deposit in the goshiwon where he lived. The province confirmed Mr. C’s vulnerable housing status through a field visit by the delinquent management team, completed a basic survey form, arranged for welfare support, and deferred his unpaid taxes.

Ryu Young-yong, Director of Tax Justice Division at the province, said, "Some defaulters exploit the nature of non-tax revenue, which makes it difficult to easily assess payment ability if no registered assets exist, to evade payment. We plan to conduct additional collections through field investigations and defer or write off debts for vulnerable groups identified among the remaining defaulters."

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