Kwanghyun Lim, National Tax Service Nominee: "I Will Reform the Long-Term On-Site Tax Audits That Have Drawn Complaints from Businesses"

Kwanghyun Lim, nominee for Commissioner of the National Tax Service, emphasized the importance of "rational tax administration" and announced on the 15th that he would reform the current practice of on-site, long-term tax audits that have burdened businesses.

During his opening remarks at the confirmation hearing held by the National Assembly's Planning and Finance Committee on this day, Lim stated, "In the midst of a complex crisis in the domestic and international economic environment, it is more important than ever to support economic recovery through a 'taxpayer-friendly administration' and a 'business-friendly tax environment.'"

Kwanghyun Lim, nominee for Commissioner of the National Tax Service, is delivering opening remarks at the confirmation hearing held by the National Assembly's Planning and Finance Committee on the 15th. 2025.7.15 Photo by Hyunmin Kim

He promised to change the way tax audits are conducted. Lim said, "I will regard taxpayers' complaints as 'treasures,' and if there are any unreasonable aspects in tax administration identified through this process, I will correct them one by one." He emphasized, "I will also innovate the outdated, on-site audit system?where tax investigation teams have often stayed at companies for extended periods, causing inconvenience and complaints from businesses?from the taxpayer's perspective." Until now, National Tax Service employees have been dispatched to target companies for up to six months to conduct tax audits, but Lim's remarks indicate that he intends to significantly shorten this period to reduce the burden on businesses.

Lim also pledged to work harder to stabilize the livelihoods of the public, such as by deferring regular tax audits for small business owners or SMEs facing temporary financial difficulties. He said, "I will sincerely consider the circumstances and difficulties of taxpayers," and added, "For export companies suffering from recent trade issues, I will be a strong supporter, providing every possible form of support from a tax administration perspective."

On the other hand, he announced strong measures against malicious and habitual tax evasion and delinquency. Lim stated, "I will conduct thorough investigations into tax evasion that harms people's livelihoods and exploits the desperate situations of ordinary citizens for unfair gain, until the taxes rightfully owed are paid." He further stressed, "For acts such as stock price manipulation, irregular capital transactions by controlling shareholders, and illegal private interest appropriation, I will respond even more firmly, for the sake of advancing the capital market."

Lim also announced plans to implement reforms in all areas of national tax administration using artificial intelligence (AI). He said, "By utilizing generative AI, we will provide free tax consulting services to all citizens and dramatically improve the convenience of filing and payment, enabling people to find optimal tax-saving measures and file returns without the help of tax agents." He added, "By training AI on the vast number of accumulated tax audit cases, we will advance the tax evasion detection system to the point where simply entering basic data such as financial statements will automatically extract potential tax evasion indicators."

He also expressed his determination to implement policies quickly. Lim said, "If I am entrusted with the role of Commissioner of the National Tax Service, I will immediately launch 'innovation task forces' for each key area upon taking office, and push forward policies at a rapid pace." He added, "I will produce visible results quickly and report them in detail to the public."

At the confirmation hearing held on this day, questions are expected to focus on the background behind Lim's selection of a tax firm that experienced rapid growth in a short period after his retirement as Deputy Commissioner of the National Tax Service, as well as the appropriateness of receiving a high salary. In response, Lim explained in a prior written answer, "The revenue of the tax firm in question is the total generated by about 20 professionals, including accountants and tax agents who have built up expertise while working in the tax industry for years." He added, "The only compensation I received from the tax firm was a monthly salary of about 12 million won, and there was no preferential treatment based on my previous position."

Regarding concerns that appointing a sitting National Assembly member as Commissioner of the National Tax Service could undermine political neutrality, Lim said, "It is extremely important for the Commissioner to maintain political neutrality, as it is directly linked to public trust in national tax administration." He added, "I will continue to make efforts to operate tax audits fairly, such as by considering the use of big data and AI technologies."