South Korea Recovers 33.9 Billion Won in Overdue Taxes Through Global Cooperation

The Hankyoreh reports on a significant achievement by the South Korean National Tax Service (NTS) in recovering substantial amounts of unpaid taxes through international cooperation. Over the last nine months, the NTS has successfully retrieved 33.9 billion won in overdue taxes, demonstrating a strengthened commitment to tax justice and cross-border enforcement.

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The National Tax Service has recovered 33.9 billion won in overdue taxes from domestic and foreign individuals over the past nine months through tax collection cooperation with tax authorities in three foreign countries.

This success is particularly noteworthy as it targets high-profile, habitual tax evaders, including Kwon Hyuk, the chairman of Sido Group, famously known as the 'Ship King' for his tax delinquency. The NTS's innovative approach involved designating Kwon's foreign-controlled companies as secondarily liable for his unpaid taxes, a strategy that ultimately led to the seizure of funds despite his attempts to conceal his assets. This highlights the NTS's sophisticated methods in tackling complex international tax evasion schemes.

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The NTS designated one of the foreign corporations controlled by Kwon as secondarily liable for his tax arrears, and after identifying the corporation's deposit account, it was able to seize and collect the funds after winning a lawsuit against Kwon's tax appeal.

Furthermore, the NTS's collaboration extended to recovering taxes from a foreign professional athlete who had absconded after failing to declare income. By engaging with the tax authorities in the athlete's current country of residence, South Korea was able to initiate asset seizure and compel payment. This case underscores the NTS's expanding reach and its determination to ensure that all individuals, regardless of their nationality or location, fulfill their tax obligations to South Korea.

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The NTS said, 'There are dozens of cases for which international cooperation procedures are underway, and it is expected that additional overdue taxes worth hundreds of billions of won can be recovered in the future.'

From a Korean perspective, these efforts are crucial not only for bolstering state revenue but also for upholding the principle of fairness in taxation. The NTS's proactive stance in pursuing tax evaders across borders sends a strong message that such actions will not go unpunished. The article quotes the NTS stating their goal to build a 'thorough international cooperation system without borders' to protect national coffers, reflecting a national pride in their ability to enforce tax laws globally.

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We will build a thorough international cooperation system without borders so that tax evaders cannot set foot anywhere in the world and protect precious national coffers.