Gyeonggi Province collected 3.4 billion KRW in delinquent taxes by seizing 20.6 billion KRW worth of virtual assets from high-value local tax delinquents using the ‘Virtual Asset Electronic Management System’.
The Virtual Asset Electronic Management System increases the detection rate of virtual asset accounts held by delinquents by utilizing identity verification data, and electronically integrates the administrative procedures for delinquency disposition between local governments and virtual asset exchanges.
From September to December last year, Gyeonggi Province conducted a comprehensive survey of virtual asset holdings targeting about 57,000 local tax delinquents who owed more than 3 million KRW, to prevent hidden assets from being moved out.
As a result, approximately 17,000 accounts (including duplicate accounts) of local tax delinquents were detected at the four major domestic virtual asset exchanges, including Upbit and Bithumb, and virtual assets worth 20.6 billion KRW, such as Bitcoin, held by the delinquents were seized.
Gyeonggi Province notified the delinquents detected through the system of the seizure of their virtual assets and encouraged voluntary payment. If payment was refused, the province collected the delinquent taxes through forced collection and sale. Gyeonggi Province streamlined the necessary administrative procedures from seizure to collection, speeding up the processing of seizure and collection.
The Virtual Asset Electronic Management System was introduced starting with Gyeonggi Province in the second half of 2023, and is currently being used for delinquent tax collection not only in cities and counties within the province but also in over 40 local governments and public institutions nationwide.
No Seung-ho, Director of the Tax Justice Division of Gyeonggi Province, emphasized, "We will continue thorough collection activities against chronic delinquents through the Virtual Asset Electronic Management System introduced by Gyeonggi Province."
Gyeonggi Province was highly recognized for contributing to the expansion of local finances through innovative improvements in delinquency management of virtual assets, receiving the grand prize (Presidential Award) and a financial incentive of 400 million KRW at the 17th Korea Local Finance Awards hosted by the Ministry of the Interior and Safety in December last year.
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