Commissioner Im Shares "National Tax Administration Operation Plan" at First National Tax Office Chiefs Meeting Since Inauguration
Thorough Investigation of Domestic Bases and Related Individuals Linked to Cambodian Corporation
The National Tax Service has launched a tax investigation after confirming suspicions of tax evasion at a domestic company affiliated with a corporation known to be behind scam crimes in Cambodia. The National Tax Service has decided to thoroughly investigate not only the domestic base of the Cambodian corporation involved in the crime but also any tax evasion by related domestic individuals, and will closely cooperate with relevant agencies to ensure that criminal proceeds are recovered.
On November 3, the National Tax Service held the first "National Tax Office Chiefs Meeting" since the inauguration at the Government Sejong 2 Complex, where it announced the "National Tax Administration Operation Plan" centered on these measures.
Im Kwanghyun, Commissioner of the National Tax Service, is speaking at the "National Tax Office Chiefs Meeting" held on the 3rd, his first since taking office. National Tax Service
Im Kwanghyun, Commissioner of the National Tax Service, stated, "We have promptly launched a tax investigation into domestic companies related to a corporation known to be behind recent scam crimes in Cambodia," and emphasized, "We will strengthen international cooperation and intelligence activities regarding countries in Southeast Asia and other regions where criminal proceeds are hidden overseas, to thoroughly recover offshore concealed assets."
The National Tax Service will use this Cambodian crime case as an opportunity to strengthen its scrutiny of transnational criminal proceeds. An official from the National Tax Service explained, "Under the policy of strictly cracking down on tax evaders who harm the livelihoods of citizens, we have launched a tax investigation into currency exchange businesses suspected of dealing with the domestic branches and money laundering financial companies of Cambodian crime organizations. We plan to thoroughly investigate the legitimacy of foreign currency remittances sent by the domestic branches of Cambodian crime organizations under the pretext of real estate investment, and will track currency exchange transaction records to determine whether tax evasion occurred. If any connection to criminal activity is confirmed, we will file charges and closely cooperate with relevant agencies to ensure the recovery of criminal proceeds."
According to the National Tax Service, a Korean national identified as B is suspected of underreporting income by understating the performance of a currency exchange business, which is reportedly linked to an overseas financial group D suspected of illegal money laundering related to the Cambodian crime. B, who has no other source of income besides operating the currency exchange business and small-scale personal service income, reported annual losses from the currency exchange business for the past five years. However, consumption expenditures were found to be in the hundreds of millions of won, indicating suspected underreporting of income. The National Tax Service believes that B's business activities are closely linked to overseas financial institution D, as B has traveled abroad multiple times since acquiring the currency exchange business. Accordingly, the National Tax Service plans to investigate suspicions of evading currency exchange commission income and will thoroughly verify any connection to illegal money laundering and other crimes by tracking currency exchange transaction records.
This National Tax Office Chiefs Meeting was held as a fully public event in line with the people's sovereignty government's commitment to "transparent state administration," with the announcement of key initiatives. The main topics discussed included: ▲ a major transformation of the national tax administration using artificial intelligence and innovative measures for delinquency management, and ▲ minimizing on-site audits at business premises, all aimed at a paradigm shift in tax administration.
The National Tax Service plans to fully innovate tax administration through a major AI transformation, in order to meet the heightened expectations of the public for taxpayer services and to enhance administrative capabilities. To assist taxpayers who have struggled with complex tax laws and procedures, the agency will significantly improve taxpayer services by providing consulting at the level of tax experts. In addition, it will shift from a human-centered to an AI-centered approach in detecting tax evasion and managing delinquencies, thereby increasing efficiency and maximizing the capabilities of the national tax administration.
Furthermore, to build a "dedicated AI infrastructure for the National Tax Service," the agency will quickly secure graphics processing units (GPUs) and introduce generative AI models. The goal is to identify and develop projects focused on three major areas-taxpayer services, fair taxation, and tax administration capabilities-so that full-scale AI-based national tax administration services can begin in 2028.
The National Tax Service will operate an "AI Transformation Task Force" as the control tower for project development and will meticulously prepare the foundation for the AI transformation, including securing personnel, enhancing security systems, and managing data.
To reduce the burden of tax audits on companies, the agency will minimize on-site audits at business premises and voluntarily improve outdated practices that have caused inconvenience to taxpayers. In addition, a "National Tax Delinquency Management Team" will be established to review the living conditions of all 1.33 million delinquent taxpayers and provide tailored delinquency management based on each individual's circumstances. For those experiencing financial hardship, the agency will connect them to welfare services to support economic recovery, while malicious delinquents will face strict measures using all available means.
The number of tax audits will be maintained at the previous year's level (approximately 14,000 cases) and operated flexibly. The agency will guide taxpayers to correct simple reporting mistakes to ensure that tax audits do not hinder economic recovery. However, in cases of tax evasion that harm livelihoods, offshore tax evasion, and unfair practices-such as anti-social tax evasion-the agency will thoroughly pursue and impose strict penalties to ensure that such acts are met with serious consequences.
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