Suwon City Collects Delinquent Taxes Using 'Real Estate Shake-Up' Technique, Receives Minister of the Interior and Safety Award

Suwon city officials are taking a commemorative photo after receiving the Excellence Award at the Korea Local Finance Awards ceremony.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Suwon City in Gyeonggi Province received the Excellence Award in the local tax category (Minister of the Interior and Safety Award) at the 15th Korea Local Finance Awards hosted by the Ministry of the Interior and Safety for "Collecting Delinquent Taxes through Real Estate Shake-up." With this award, Suwon City will receive approximately 200 million KRW in local allocation tax.

The Korea Local Finance Awards, introduced in 2008, is a competition that shares local tax collection cases of local governments and awards outstanding cases.

On the 22nd, the Ministry of the Interior and Safety selected Suwon City as an excellent case after reviewing 16 cases that passed the document screening at the Take Hotel in Gwangmyeong City.

Real Estate Shake-up involves re-examining stakeholder and rights analysis from the ground up to secure valid claims, utilizing expertise to turn seized real estate into "profitable real estate."

The city reviewed "subrogation auction of mortgage rights" based on Article 404 of the Civil Act (Creditor's Subrogation Right). After consulting with the Suwon District Court and interviewing lawyers, a minority opinion was received stating that "subrogation auction is theoretically possible."

Based on minority expert opinions and legal grounds, the city asserted the justification for the "application for voluntary auction by creditor's subrogation," leading the court to accept the subrogation auction, ultimately achieving the collection of the entire delinquent amount.

A city official stated, "We shared nationwide the case of turning unprofitable seized real estate into 'profitable real estate' using the Real Estate Shake-up technique to collect delinquent taxes," and emphasized, "We will continue to develop new collection techniques to convert long-unexecuted seized real estate, which has been written off as bad debt, into profitable real estate."

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