Gyeonggi-do Seizes 12 Billion Won of Hidden Delinquent Assets in Secondary Financial Institutions Including Credit Unions

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has achieved the seizure of approximately 12 billion KRW by conducting a full investigation into the hidden assets of delinquent taxpayers in Saemaeul Geumgo and other institutions. This full investigation and seizure is the first among metropolitan local governments nationwide.

Gyeonggi Province announced on the 18th that it conducted a comprehensive investigation of 388 mutual financial cooperatives within the province, including Saemaeul Geumgo, credit unions, and local agricultural cooperatives, which had been blind spots in delinquent tax enforcement, and seized 12 billion KRW in financial assets. This is the first such effort by a metropolitan local government.

While primary financial institutions can immediately seize deposits through the local tax electronic system, mutual financial cooperatives lack such a system, making them places where delinquent taxpayers sometimes hide their assets.

From December last year to February this year, the province investigated the investment capital and deposit details in mutual financial cooperatives of 289,824 delinquent local taxpayers, uncovering financial assets of 3,792 delinquent taxpayers (with delinquent amounts totaling 24.3 billion KRW).

The province seized 12 billion KRW in financial assets from the 3,792 delinquent taxpayers identified through the investigation, and after encouraging payment, will proceed with sequential collection for non-payers according to the Local Tax Collection Act.

Details of the seizure show financial assets consisting of 6.112 billion KRW in investment capital and 5.893 billion KRW in deposits other than investment capital. By financial institution, there were 1,369 cases in Saemaeul Geumgo, 794 cases in local agricultural cooperatives, 683 cases in credit unions, and 133 cases in forestry cooperatives.

For example, Mr. A, residing in Gwangju, Gyeonggi Province, had delinquent taxes of 900,000 KRW since 2016, including property tax. Despite repeated payment requests, he resisted due to financial difficulties. However, the investigation revealed that he had invested 100 million KRW in Saemaeul Geumgo, leading him to pay the full delinquent amount of 900,000 KRW.

Mr. B, living in Yeoncheon, also had delinquent taxes of 1.3 million KRW, including property tax, but after it was confirmed that he held deposits exceeding 200 million KRW in a local agricultural cooperative, he paid the full amount.

Lee Ui-hwan, Director of the Tax Justice Division of the province, stated, "We will strongly enforce delinquent tax collection against chronic delinquent taxpayers and provide maximum support within the allowed system for those experiencing financial difficulties," urging voluntary payment to realize fair tax justice.