Gwangju City Implements Thorough Tax Collection...Tax Relief Provided for Livelihood Cases

Utilizing Big Data for Customized Collection
Tracking Virtual Assets and More

Gwangju City Local Tax Delinquency Collection Team 'Vehicle License Plate Seizure' archival photo. Provided by Gwangju City

Gwangju City is launching a comprehensive campaign to collect overdue taxes by developing new collection techniques targeting high-value and habitual delinquents. Taking into account the challenging economic conditions, the city also plans to provide tax relief, such as deferring collection actions, for those whose delinquencies are related to livelihood difficulties.

According to the city on the 11th, in light of the difficult fiscal situation caused by the prolonged economic downturn this year, swift and proactive collection activities will be carried out against those who evade their tax obligations.

To this end, the city will actively enforce seizure, public auction, and sale of delinquent taxpayers' assets, including real estate, vehicles, and financial assets. In addition, various administrative sanctions such as license plate seizure, registration of public information, public disclosure of names, travel bans, and detention requests will be strengthened.

For high-value and habitual delinquents, the city will pursue strong legal actions such as lawsuits for cancellation of fraudulent transfers and seizure of bank safe deposit boxes. The city also plans to quickly collect overdue amounts by filing lawsuits to cancel senior mortgage rights on seized real estate. The scope of asset investigations will be expanded to include seizures of various claims such as virtual assets, lease deposits, pre-sale rights, occupancy rights, and patent rights.

In particular, the city will use big data that merges and analyzes internal tax data and external credit information of delinquents to carry out customized collection activities. The city will also expand measures to seize court deposits and litigation claims. Focus will be placed on developing new collection techniques to respond to increasingly sophisticated high-value delinquents.

For livelihood-related delinquents identified during the collection process, the city will implement tailored debt settlement. For those facing temporary financial hardship, tax support will be provided by allowing installment payments and deferring collection actions and administrative sanctions.

Kim Daejeong, head of the Taxation Division, said, "While we will carry out active collection activities for those who evade taxes, we will also show the utmost consideration for livelihood-related delinquents within the limits permitted by law."

Meanwhile, last year Gwangju City, in cooperation with district tax collection departments, collected 28.4 billion won out of a total of 66 billion won in local tax delinquencies (including district taxes), achieving a collection rate of 43%. This far exceeded the national average of 33.2% and ranked second nationwide.