Seoul City Introduces 'AI Technology-Based Automated Rent Processing and Reading System'

Full Expansion Implemented in All 25 Districts Starting This Month

The Seoul Metropolitan Government announced on the 19th that it has been conducting a pilot operation of the 'Automated Reading System for Local Tax Manual Payment Slips Applying Artificial Intelligence (AI) Technology' in seven districts since January this year, and due to the system's stabilization, it will be fully expanded to 25 districts starting this month.

Although most local tax tasks are computerized, some tax items (such as local income tax and resident tax) that taxpayers report and pay directly are still processed through non-OCR manual payment slips.

Since 2018, Seoul has continuously pursued policies to improve taxpayer convenience and administrative efficiency by converting manual payments (non-electronic payments) into electronic payments. However, administrative costs continue to occur due to the manual data entry process of manual payment slips, and taxpayer inconvenience persists due to delays in payment processing (taking 7 to 14 days).

Accordingly, Seoul has jointly introduced a character recognition system capable of converting scanned manual payment slips into text and numbers with Shinhan Bank, the city’s treasury bank, to efficiently handle the revenue processing of manual payment slips.

This system applies artificial intelligence (AI) technology to classify forms, read each reporting item value, and extract data. It is an automated system that cross-checks the scanned originals with information linked to internal business systems to process payments. By shortening the manual data entry process, it not only reduces administrative costs but also minimizes civil complaints by processing payments on the same day instead of the previous 7 to 14 days after payment, benefiting both public officials and citizens.

To ensure smooth implementation of the system, Seoul selected seven district offices for pilot operation starting in January this year. Through system stabilization, including improved reading performance, enhanced recognition accuracy using learning data, and strengthened information verification, the system will be expanded to all 25 autonomous districts from July 20.

Song Young-min, head of the Taxation Division of Seoul, said, “The manual processing issue of local tax payment slips is a common matter not only for Seoul but for all local governments. The introduction of the automated reading system for manual slips will reduce administrative costs and benefit both public officials and citizens. Furthermore, it will contribute to reducing carbon emissions in the era of climate crisis by eliminating the need to transport paper documents in the future.”