Gyeonggi Province is achieving significant results by partnering with 31 cities and counties to conduct bulk auctions of trust real estate and seized real estate in order to settle accumulated tax arrears.
Gyeonggi Province announced on the 30th that starting with a comprehensive cleanup of trust real estate in January, it promoted bulk auctions of seized real estate with property value in April, collecting 13.7 billion KRW in delinquent taxes through 2,451 real estate auctions during the first half of the year.
Gyeonggi Province explained that despite efforts to encourage payment, such as designating physical tax payment obligations on trust real estate, there was no sign of improvement as related local tax arrears reached 23 billion KRW, leading to strong measures against delinquency.
However, before conducting the auctions, Gyeonggi Province notified delinquent taxpayers and trust companies in advance and encouraged voluntary payment. Additionally, for general real estate under seizure, auctions were actively pursued when rights analysis indicated practical benefits.
No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, stated, "As more citizens participate in the auctions, the settlement of arrears will proceed more swiftly, leading to revitalization of real estate transactions. Participation in auctions greatly helps secure Gyeonggi Province’s tax revenue and stimulates the local economy."
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