Gyeonggi Province collected 8.5 billion won in overdue local taxes last year through a comprehensive investigation of court deposits and financial transactions held by delinquent taxpayers, officials announced Sunday. The province identified and seized assets held by individuals and entities failing to meet their tax obligations, marking a significant increase in enforcement efforts.
The investigation, targeting over 410,000 individuals with outstanding local taxes of 300,000 won or more, resulted in the seizure of 181.1 billion won in court deposits belonging to 1,884 taxpayers. Of that amount, 3.7 billion won was directly collected, according to a statement released by the Gyeonggi Provincial Government. Court deposits represent funds or securities held by the courts as collateral in legal disputes or during property auctions.
Gyeonggi Province collaborated with the court system to verify whether delinquent taxpayers held rights to claim these deposits, initiating seizure and collection procedures in accordance with relevant laws. The seized funds are being applied to outstanding tax debts as legal proceedings allow.
In a parallel effort, the province examined the financial holdings of over 610,000 high-value tax debtors, scrutinizing account balances across 20 financial institutions. This review led to the seizure of 61.2 billion won in deposits held in 1,074 accounts, with 4.8 billion won subsequently collected.
“We will continue to diligently manage and collect seized deposits and collectible claims,” stated Noh Seung-ho, head of the Tax Justice Division at Gyeonggi Province, emphasizing the province’s commitment to upholding tax equity. “We will continue systematic asset investigations to realize tax justice.”
The province’s approach, which simultaneously targeted court deposits and financial accounts, is seen as a key factor in the success of the collection efforts. The investigation into financial accounts specifically aimed to prevent tax evasion by identifying hidden assets. Unlike tax audits focused on income, this initiative directly linked financial information to outstanding local tax liabilities.
While the initial seizure of court deposits totaled 181.1 billion won, the actual amount collected was 3.7 billion won, representing a 2% recovery rate. Officials indicated that efforts are ongoing to collect the remaining seized funds.
