Im Kwang-hyun, head of the National Tax Service, has requested the National Assembly to establish a law to consolidate the management of delinquent national tax revenues, which are currently dispersed across various ministries. He emphasized the need to enhance responses based on the type of delinquency, including tracking hidden assets of malicious tax evaders and supporting struggling taxpayers.
During a report to the National Assembly's Finance and Economy Committee on October 13 at the Government Sejong Complex, Im stated, "By integrating the collection of national tax revenues, we aim to manage the overall national financial income efficiently and responsibly. The establishment of a unified collection law is essential."
Currently, national tax revenues are managed by various ministries under more than 300 laws. Im noted that inadequate systematic management has led to an increase in delinquent taxes, asserting, "We will leverage the National Tax Service's collection capabilities and expertise to improve the collection rate of delinquent national tax revenues."
The National Tax Delinquency Management Team, launched in March, is set to expand to 10,000 personnel in the second half of the year, deployed across 133 tax offices nationwide. By July, the team had collected 63.2 billion won in cash, achieving more than three times the expected budget performance.
For 329 tax delinquents who are intentionally evading payment, the agency plans to analyze their hidden assets and income for tracking investigations. The delinquent amounts of 4,992 struggling taxpayers, totaling 81.7 billion won, have been deemed uncollectible, and welfare services have been linked to 1,667 individuals facing difficulties due to illness or accidents.
A newly established special investigation team for tax audits and delinquency tracking will address malicious tax evasion. Im stated, "We will resolutely utilize all available means, including tax collection and criminal charges, to combat acts of evasion such as hiding assets overseas and transferring income."
The agency plans to pursue civil lawsuits against fraudulent activities and auction off unsold real estate. It will also encourage reports of tax evasion and asset concealment. Additionally, a comprehensive analysis system for virtual assets will be developed to strengthen responses to tax evasion.
As of August, the cumulative tax revenue under the National Tax Service's jurisdiction reached 323.8 trillion won, an increase of 68.6 trillion won from the previous year. The progress rate against the revenue budget stands at 79.6%, up by 9.7 percentage points. Im remarked, "In the remaining second half of the year, we will thoroughly monitor tax revenue conditions and ensure stable national finances through support for accurate reporting on major tax items and enhanced collection activities for high-value delinquents."
To improve taxpayer convenience, the National Tax Service will expand its pre-filling and all-filling services and support income tax reporting without visiting tax offices. For couples owning a single home, the agency has provided initial guidance on favorable comprehensive real estate tax estimates based on special provisions. It plans to proactively refund excess property taxes paid over the past five years.
Areas with high risks of tax evasion, such as non-residents fraudulently claiming exemptions on capital gains tax for one-household properties, will undergo focused verification of reported information.
Support for livelihoods will be tailored to the circumstances of affected individuals and business conditions. A dedicated service window will be established in areas designated as special disaster zones due to heavy rainfall, and extensions on payment deadlines and investigations will be applied to small businesses and micro-enterprises. Companies located in provincial areas and those relocating to the provinces will receive preferential treatment regarding investigation delays, while support for startups and deferment of student loan repayments will assist young people's economic independence.
Tax evasion verification will focus on real estate, capital markets, and areas affecting livelihoods. Im stated, "We will thoroughly verify anti-social real estate tax evasion practices, such as low-priced transfers by multiple homeowners and disguised transactions among related parties." The agency will also examine tax evasion related to stock manipulation, asset and profit outflows from listed companies, and the private use of high-value homes and supercars registered under corporate names, while tracking and recovering offshore tax evasion.
To reduce the burden of corporate investigations this year, the National Tax Service is implementing a system for selecting the timing of regular tax audits, minimizing on-site investigations, and publicly disclosing repeated issues in advance. In this regard, Im noted, "We have received positive feedback from businesses, and we will continue to innovate tax audits."
In terms of organizational operations, the agency will expand regular promotions and performance rewards for employees below grade six. In August, the National Tax Service provided up to 20 million won per individual, totaling 93 million won, for special contributions such as recovering hidden assets overseas. Plans are in place to improve the work environment through the expansion of employee protection legal teams, increased civil service allowances, and the reduction of non-productive tasks.
AI-based tax innovation will broaden its scope from taxpayer services to fair taxation and operational efficiency. The agency plans to introduce an 'AI Tax Consultant' to provide tailored advice to taxpayers who find it difficult to seek assistance from tax agents, as well as a service to automate simple and repetitive tasks.
Im stated, "We will develop an AI tax evasion detection system that identifies evasion patterns based on past investigation cases and predicts high-risk evasion suspects." Plans include training specialized personnel and improving security systems concurrently.
* This article has been translated by AI.
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