Gyeonggi-do to Auction Foreclosed Real Estate with Over 5 Million KRW in Tax Arrears... 1,596 Cases

Gyeonggi Provincial Government

Gyeonggi Province will conduct a bulk auction of real estate seized by the province and its 31 cities and counties.

Real estate auctions are a strong collection method for delinquent taxpayers who delay payment even after property seizure, moving away from passive delinquency measures, based on the 'Local Tax Collection Act' (Article 71).

Gyeonggi Province, through its 31 cities and counties, has confirmed a total of 1,596 auction targets by analyzing the practical benefits of auctions, including reviewing rights relations and the possibility of covering delinquent amounts, targeting real estate of high-amount delinquent taxpayers with local tax arrears of 5 million won or more. The delinquent taxes amount to 16.7 billion won.

Before conducting the auction, Gyeonggi Province will send advance notice to encourage voluntary payment, and if payment is not made even after the advance notice, the delinquent property will be requested for sale to the Korea Asset Management Corporation.

However, for livelihood-type and small businesses having difficulty in payment due to economic downturns, payment ability will be considered to encourage installment payments and temporarily suspend auctions, operating delinquency collection flexibly.

No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "We will implement strong delinquency procedures against high-amount delinquent taxpayers who evade tax obligations despite having the ability to pay, striving to enhance fairness with taxpayers who faithfully pay even in difficult economic situations and to foster a sound tax payment culture."