Gimpo City Collects 4.2 Billion Won in Back Taxes Through Systematic Local Tax Reduction Post-Management

Numerous Violations of Reduction Requirements Detected
Uncovered Omitted Tax Sources to Expand Fiscal Resources

Gimpo City in Gyeonggi Province announced on January 9 that it had collected 4.2 billion won in back taxes last year, the highest amount in the past five years and an increase of 1.5 billion won compared to the five-year average. This was achieved by implementing systematic post-management focused on areas with a high proportion of local tax reductions, such as industrial complexes, knowledge industry centers, start-up small and medium-sized enterprises, rental business operators, and first-time home purchases.

Gimpo City Hall exterior. Provided by Gimpo City

After reducing acquisition taxes, the city strengthened post-management, uncovering numerous cases of violations of reduction requirements and identifying previously undiscovered tax sources. As a result, the city contributed to expanding local fiscal resources.

During the post-management process, the city faced difficulties such as delayed or refused submission of required documents despite prior guidance on reduction requirements, cases where only formal business registrations were maintained making it difficult to verify actual use, and instances where facts about leasing or changes in use were concealed or explained belatedly.

In response, the city introduced a multifaceted management approach to enhance accuracy and fairness in post-management. This included on-site inspections to verify actual usage, cross-referencing and analyzing data from related agencies, sending repeated notifications, and conducting both telephone and written explanations.

A Gimpo City official stated, "Acquisition tax reductions are a benefit granted to taxpayers, but they also come with the responsibility to faithfully comply with the requirements. We will continue to strengthen post-management to ensure the purpose of the reductions is not undermined, and do our utmost to foster a culture of faithful tax payment and secure the soundness of local finances."