A New Model of Coordination for Mutual Benefit and Proactive Seizure
Gwanak District in Seoul (District Mayor Park Junhee) has set a new milestone in tax administration by resolving difficult delinquency issues based on “empathy and trust.”
Tax officials achieved the full collection of approximately 150 million won in delinquent taxes through proactive administration. They consistently consulted with delinquent taxpayers to coordinate the timing of seizures, and further, preemptively identified and seized surplus funds generated during the auction process.
Gwanak District ranks 19th in fiscal independence among Seoul’s 25 districts, and its financial conditions are not robust. The environment for tax collection has become even more challenging due to the spread of jeonse fraud, an increase in small business closures, and growing pressure to repay loans from financial institutions. Nevertheless, empathy-based counseling and the dedicated efforts of tax officials became the key breakthrough, resulting in the full collection of the delinquent amount.
A district official explained, “Most delinquent taxpayers were not intentionally avoiding payment, but were facing temporary difficulties due to the economic downturn, reverse jeonse, and loan repayment pressures. The taxpayer in this case also appealed for more time, citing their jeonse deposit being tied up and the burden of loan repayments.”
The district flexibly adjusted the timing and scope of seizures in consideration of the taxpayer’s circumstances. As this trust-based relationship was built, the taxpayer voluntarily reported the occurrence of surplus auction funds, enabling preemptive seizure and collection.
As a result, the district secured about 80 million won through a formal claim for distribution, and recovered the remaining 70 million won in full through on-site seizure and collection on the day the funds were distributed.
This case is particularly significant because it moved beyond the conventional “end after requesting dividend payment” approach, and instead, proactively identified surplus funds that could remain after distribution, paving the way for more effective tax collection.
Park Junhee, Mayor of Gwanak District, stated, “Seizure is not the goal, but a means. The most important role of administration is to coordinate so that all parties-including delinquent taxpayers, tenants, and financial institutions-can coexist. This case is a model example of administration that understands and empathizes with people, leading to real collection results. Going forward, the district will continue to practice warm and attentive tax administration, listening closely to the voices of those in need.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
