Hiding Assets by Purchasing Artworks and Gold Bars Under Acquaintances' Names... National Tax Service Investigates Assets of 641 People

For the First Time, National Tax Service Directly Sells Seized Virtual Assets to Collect Taxes

The National Tax Service (NTS) will conduct a tracking investigation on delinquent taxpayers who hide assets by purchasing artworks and precious metals (such as gold bars) under the names of family members or acquaintances. In particular, since May of this year, the NTS has directly sold seized virtual assets for the first time to collect delinquent taxes.

Yang Dong-hoon, Director of the Tax Collection and Legal Affairs Bureau at the National Tax Service, is giving a briefing on the 14th.

On the 14th, the NTS announced that it will launch asset tracking investigations on a total of 641 delinquent taxpayers: 41 who hid assets through artworks, precious metals, and new investment products; 285 who embezzled various property rights such as inherited assets and golf memberships through sophisticated methods; and 315 who live luxuriously by residing in high-priced houses and driving luxury vehicles.

Yang Dong-hoon, Director of the Tax Collection and Legal Affairs Bureau at the NTS, explained, "Recently, high-value delinquent taxpayers have been confirmed to conceal assets by purchasing high-priced movable properties that are difficult to verify through registries under others' names or by subscribing to newly released investment products, using them as a means to generate income. We are conducting planned analyses reflecting the latest investment trends, such as artworks entrusted for rental and music revenue securities, targeting 41 individuals suspected of asset concealment who hid assets under the names of family or acquaintances, and are pushing for compulsory collection."

There are also cases where delinquent taxpayers collude with related parties to avoid registering assets under their own names through illicit means, or deliberately avoid exercising subrogation rights after repaying debts on behalf of others, thereby evading compulsory collection through irregular methods.

Since the delinquent taxpayer expects that if they inherit property while having outstanding taxes, the inherited real estate will be subject to seizure, they secretly receive cash from other heirs in exchange for giving up their inheritance shares in collusion with other heirs. Additionally, delinquent taxpayers who have acted as guarantors for family or acquaintances, repaid debts on their behalf, and then deliberately did not exercise subrogation rights against family or acquaintances with repayment ability, as well as those who transferred property rights such as golf memberships, patents, pre-sale rights, and stocks to related parties anticipating or immediately after tax delinquency, are also subjects of tracking investigations.

The NTS is also investigating delinquent taxpayers who operated online gambling sites, acquired real estate using family members' names with illegal proceeds, and lived luxuriously using credit cards registered under relatives' names.

Cash and precious metals found by the National Tax Service through a search. (File photo)

Since May of this year, the NTS has directly sold seized virtual assets to collect delinquent taxes for the first time. The total virtual assets seized due to tax delinquency since 2021 amount to 108 billion KRW, of which 94.6 billion KRW has already been collected in cash. Until now, corporations including tax authorities were restricted from trading virtual assets on exchanges, so even seized virtual assets could not be directly sold or collected. However, through consultations with related agencies, direct sales of virtual assets began this month. Currently, 1.1 billion KRW worth of virtual assets have been directly sold to cover delinquent amounts, and sales and collections of the remaining 12.3 billion KRW worth of seized virtual assets will continue.

Director Yang stated, "The NTS will continue to track and collect assets from high-value and habitual delinquent taxpayers to uphold tax justice. We ask for active reporting by referring to the lists of high-value and habitual delinquent taxpayers published on the NTS website and other platforms."