Gangnam-gu Seizes Bitcoin from Tax Delinquents Owing Over 3 Million Won

Bitcoin and Other Virtual Assets Seized Through Inquiry
Total Tax Arrears Amount to 20.9 Billion KRW...Enforced Execution via Bond Seizure

Gangnam-gu, Seoul (District Mayor Jo Seong-myeong) announced on the 6th that from this month until October, it plans to investigate and seize virtual assets such as Bitcoin from delinquent taxpayers who evade paying taxes.

The investigation targets 1,991 delinquent taxpayers with arrears of 3 million KRW or more, totaling 20.9 billion KRW. Gangnam-gu is the first among Seoul's autonomous districts to take such action.

The district plans to utilize Article 36 (Inquiry and Inspection Rights) of the Local Tax Collection Act to cross-check data from three major virtual asset exchanges with large transaction volumes (Upbit, Bithumb, and Korbit) against delinquent taxpayer records to identify offenders. The district will encourage payment from identified delinquents and designate the exchanges as third-party debtors to enforce compulsory execution by seizing monetary claims.

The district aims to proactively uncover hidden tax sources before unscrupulous delinquent taxpayers sell virtual assets, which they have used as a means of concealment. Taxation on investment income from virtual assets, previously known as a blind spot in tax collection, has been postponed from the original 2025 to 2027.

District Mayor Jo Seong-myeong stated, “While tax revenues have decreased, the administrative demands of residents have increased, and we are striving to overcome the shortage of resources. We will carry out strong collection activities against unscrupulous high-amount delinquents to realize tax justice so that taxpayers who faithfully pay their taxes do not feel relatively deprived.”