The Gyeonggi Provincial Government has successfully tracked and recovered 168 million won in litigation cost receivables that were previously considered difficult to collect due to the impossibility of compulsory collection procedures.
Litigation cost receivables are civil claims imposed on parties who lose administrative or civil lawsuits against Gyeonggi Province, according to the court's decision on the amount of litigation costs.
Unlike local taxes or general non-tax revenues governed by public law, these receivables are classified as "high-difficulty receivables" because compulsory collection is not possible, and all procedures such as seizure and compulsory execution must be carried out through the courts.
To enhance fiscal soundness and expand revenue, Gyeonggi Province launched a fact-finding investigation and focused collection of litigation cost receivables starting in January this year. As a result, out of a total of 196 litigation cost receivable cases amounting to 1.09 billion won, the province collected 44 cases, totaling 168 million won.
In specific cases, during the fact-finding investigation, the province discovered that Mr. A, who had lost a lawsuit related to compensation for losses and was charged 37 million won in litigation costs in 2016, had evaded payment for a long time by registering a false address. After further investigating his assets and identifying his actual residence, the province initiated compulsory execution procedures on his movable property, prompting Mr. A to pay the full amount before the auction date.
In the case of Mr. B, who also failed to pay litigation costs after losing a compensation lawsuit, collection was difficult due to his loss of nationality. However, before the statute of limitations expired, it was confirmed that he had regained his nationality. The province immediately conducted an investigation and notified him of the compulsory execution procedure on his movable property, leading Mr. B to pay the full amount of 10.7 million won.
Similarly, Mr. C failed to pay 7.3 million won in litigation costs after losing a compensation lawsuit, but upon the simultaneous commencement of bank account seizure and compulsory execution procedures, he immediately paid the full amount.
No Seungho, Director of the Tax Justice Division at Gyeonggi Province, stated, "Litigation cost receivables are institutionally difficult to recover, but by not giving up and thoroughly following legal procedures, we achieved meaningful results. We will continue to do our utmost in receivables management, determined not to let a single public fund go to waste."
Meanwhile, Gyeonggi Province has abandoned collection efforts on 19 receivables cases (73 million won) deemed virtually uncollectible in accordance with relevant laws and regulations.
These cases include recipients of basic livelihood security, individuals undergoing personal rehabilitation or bankruptcy discharge, those who are deceased or missing and therefore impossible to enforce collection against, or small receivables where the amount is less than the cost of compulsory execution, making collection impractical.
By officially writing off these receivables, the province has reduced administrative inefficiency associated with long-term management and created an environment that allows for greater focus on recoverable receivables.
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