Songpa-gu Collects 270 Million Won in Tax Arrears After 11 Years of Pursuit

Active Management of Seizure of Trust Property Income from Delinquent Closed Corporations → 980 out of 981 Delinquent Cases Collected
Songpa-gu Operates Special Collection Team for High-Amount Delinquencies and Achieves Collection Target Exceeding Previous Year through Strong Administrative Sanctions

Songpa-gu (District Mayor Seo Gang-seok) announced that after tracking a closed local corporation that had overdue high-value taxes such as property tax for 11 years, it successfully collected 980 out of 981 overdue cases, totaling 266 million KRW.

The district established a delinquent tax management plan aimed at realizing tax justice and expanding finances, and has been conducting thorough collection activities. In fact, the amount collected from local tax delinquencies in 2023 increased by 2.2 billion KRW compared to 2022, with a collection rate rising by 2.3%, exceeding the target amount. The efforts toward the delinquent tax collection goal have borne fruit.

For example, recently the district succeeded in collecting a large amount of overdue property tax by long-term tracking of a closed corporation. The corporation suddenly closed in November of the year 2013, when the district imposed a total of 981 tax cases, without paying a single penny. Upon confirming this, the district launched a detailed investigation and discovered that the delinquent corporation had entrusted significant assets to a trust company.

Subsequently, in 2014, the district promptly seized all claims (profits) generated from the trust assets. Since these claims were uncertain term claims with unsettled accounts at the time, the timing of profit realization was unknown, but the district persistently continued tracking them.

Every year, the district has consistently communicated with the third debtor, the trust company, regarding the settlement and distribution of the seized profits, and through persistent efforts such as demanding deposits and sending collection letters to resolve the long-standing delinquencies, it was able to settle 980 out of the total 981 overdue cases, leaving only one case unresolved.

To thoroughly manage high-value, habitual, and chronic delinquents, the district formed a ‘Special Collection Team for High-Value Delinquencies,’ which conducts weekly on-site visits to investigate conditions and encourage payments, and enforces strong administrative sanctions such as travel bans, public disclosure of names, restrictions on licensed businesses, seizure and auction measures, prosecution referrals, and detention.

The district plans to continue operating a focused delinquency settlement period until the end of the year and will clear overdue amounts through meticulous collection activities.

Seo Gang-seok, Mayor of Songpa-gu, stated, “We will not neglect even long-standing delinquencies and will track them to the end so that all residents fulfill their tax obligations fairly,” adding, “We will continue to strictly manage high-value delinquents and do our best to expand district finances and realize tax justice.”

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