Im Kwang-hyun, head of the National Tax Service, announced the establishment of a dedicated team to track high-value tax delinquents who hide assets through overseas affiliates or name trusts. A tax management team of 10,000 will be deployed to assess the status of accumulated delinquencies totaling 130 trillion won, and a tax service and tax evasion detection system utilizing artificial intelligence (AI) will also be developed.
Im made the announcement during a nationwide tax office meeting held on August 12 at the Government Sejong 2nd Office, outlining the '2026 Second Half National Tax Administration Operation Plan.'
The dedicated teams for tax delinquency tracking and tax investigations will be established at the Investigation Bureau 4 of the Seoul Regional Tax Office and Investigation Bureau 3 of the Central Regional Tax Office. They will conduct integrated investigations into asset tracking, evasion of tax collection, offshore tax evasion, and corporate fund outflows.
Previously, the National Tax Service's collection office conducted surveillance, inquiries, and home searches targeting high-value and habitual delinquents. However, it was challenging to confirm the actual ownership of delinquents' assets when they were obscured through multiple layers of overseas affiliates or when shares of domestic corporations were registered under others' names.
The newly established teams will utilize irregular tax investigation methods, including overseas information collection and analysis, to verify hidden assets and tax evasion suspicions. They will track transactions between business owners and domestic and foreign affiliates to identify corporations and assets that the delinquents effectively control.
Park Sang-jun, head of the National Tax Service's Investigation Planning Division, explained in a related briefing, "The teams at the Seoul and Central offices are irregular dedicated investigation units, and we are prioritizing their establishment based on their capacity to focus on transactions between business owners and affiliates."
In the second half of the year, a total of 10,000 personnel will operate the National Tax and Non-Tax Revenue Delinquency Management Team to assess the status of the accumulated 130 trillion won in delinquencies. Currently, 5,500 personnel are active, and about 18,800 people applied for the recruitment of an additional 4,000 personnel to be deployed in October, resulting in a competition ratio of 4.7 to 1.
The delinquency management team will verify the payment capabilities of small-scale delinquents via phone and will investigate high-value delinquents and those avoiding visits in person. Based on the findings, delinquents will be classified into three categories: temporarily unable to pay, willfully avoiding payment, and those facing financial difficulties.
For those temporarily unable to pay, installment payment options will be provided. In cases of willful concealment of assets, home searches, seizures, and lawsuits to cancel fraudulent transactions will be pursued, while those facing financial difficulties will be linked to welfare services and have their payment obligations extinguished.
Starting in 2027, the authority to collect fines and penalties scattered across various government departments will be centralized under the National Tax Service. The agency plans to support the passage of the 'Law on the Collection and Management of Non-Tax Revenue Delinquencies' within the year and establish a database and integrated management system for each delinquent.
The National Tax Service has begun verifying the status of 2.95 million individuals with unpaid fines totaling 1.1 trillion won from the National Police Agency, and starting in September, it will expand its scope to include wage claims from the Ministry of Employment and Labor, environmental improvement charges from the Ministry of Climate, Energy, and Environment, and fines from the Fair Trade Commission.
Beginning this second half of the year, the National Tax Service will implement AI-based 'Home Tax AI Search' and 'AI Phone Consultation.' It is also in the process of designing an 'AI Tax Evasion Detection System' that combines past tax investigation cases, investigative know-how, and big data.
During the meeting, Im stated, "We have successfully carried out the national tax administration innovation projects initiated from field voices over the past six months. In the second half, I urge all of you to work together to lead national financial innovation and practice fair taxation, enabling the National Tax Service to support the great leap of 'Irreplaceable Korea.'"
* This article has been translated by AI.
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