"Relentless Pursuit of Major and Habitual Delinquents"... Gangdong District Collects 2.1 Billion KRW in Overdue Taxes

Realizing Tax Justice Through Multifaceted Measures Against Delinquency

On June 26, Gangdong District in Seoul announced that it had recently collected the entire amount of overdue local taxes, totaling 2.1 billion KRW, from a high-value and habitual delinquent taxpayer. This achievement was made possible through multifaceted responses to tax delinquency and robust collection efforts, aimed at realizing tax justice and fostering a sound tax payment culture.

Exterior view of Gangdong District Office. Provided by Gangdong District.

The delinquent taxpayer in question had habitually failed to pay local taxes, accumulating a total of 71 cases and 2.1 billion KRW in overdue taxes, which is the highest amount of tax delinquency in the district. Since July 2022 through March of this year, the district office seized the individual's real estate and court deposits, and encouraged voluntary payment by obtaining a payment plan from the taxpayer.

When the taxpayer still failed to make payments, the district diversified its collection strategies, proceeding with real estate auctions, withdrawal of court deposits, and designating the trust company as the material taxpayer. These measures ultimately led to the full recovery of the overdue amount.

In addition, the district has continuously strengthened administrative sanctions and collection activities against individuals who habitually fail to pay large amounts of taxes despite having the ability to pay. These measures include public disclosure of names, travel bans, provision of information to credit agencies, and vehicle seizures. In particular, in response to the recent increase and diversification of delinquency types, the district has actively designated trust companies as material taxpayers for delinquent trust property, in accordance with the revised Local Tax Act implemented last year.

Lee Soohee, Mayor of Gangdong District, stated, "Gangdong District is committed to fair tax collection and the realization of tax justice," and added, "We will do our utmost to ensure that tax revenue is used efficiently where it is most needed in the community."