Gyeonggi-do Conducts Bulk Auction of 11,989 Trust Real Estate Properties with Local Tax Arrears

Gyeonggi Provincial Government

Gyeonggi Province is joining hands with 31 cities and counties within the province to resolve 19.7 billion KRW in local tax arrears related to trust real estate through strong collection methods such as public auctions.

On the 28th, Gyeonggi Province announced that it will notify trust companies of the upcoming public auction and will proceed with a bulk public auction through the Korea Asset Management Corporation for trust properties with unpaid arrears by the 31st.

Since the revision of the Local Tax Act in 2014, trustees are required to pay property tax as the original taxpayer or as the real taxpayer for trust properties.

The reason Gyeonggi Province is pushing for such strong collection measures is that there have been a total of 2,501 cases in Gyeonggi Province alone where local taxes were not paid and ownership of trust properties was transferred. As a result, local tax claims amounting to 2.3 billion KRW also disappeared.

Accordingly, among the trust properties with unpaid arrears by the 31st of this month, 5,945 trust real estate properties with arrears of 10.8 billion KRW, which have already been seized by the 31 cities and counties as tax creditors, will all be consigned to the Korea Asset Management Corporation for public auction by the end of February.

For cases where seizure has not yet been executed or where the real taxpayer obligation has not been notified, all seizures or designations of real taxpayer obligations will be completed by the end of February, and public auctions will be promoted by the end of April.

Among the real estate subject to the comprehensive cleanup, properties for which real estate trust companies such as A Asset Trust hold trustee status total 9,323 cases with arrears of 17.6 billion KRW, accounting for 89.3% of the total amount. Gyeonggi Province believes that the collection effect can be reliably secured when trust real estate is publicly auctioned.

No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "We expect the policy effect to be greater as Gyeonggi Province is pushing forward collectively on trust property arrears, which are difficult for individual cities and counties to handle on their own."

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