Seoul to Name Major Tax Delinquents, Boost Collection Efforts

Seoul Intensifies Tax Collection Measures

The Seoul Metropolitan Government (SMG) has announced its intent to significantly ramp up efforts to collect overdue taxes, targeting habitual delinquents through a two-pronged strategy. This includes the publicization of tax evaders’ names and the crucial involvement of the Korea Customs Service for more robust debt collection. The move aims to enhance tax fairness and secure vital municipal revenue.

The first key measure involves the public naming of individuals and entities with substantial unpaid local taxes. This practice, common in Korea, applies social pressure to encourage payment and deter future evasion. Before official publicization, however, the SMG issues formal warnings, and this notice serves as a final public notification to specific delinquents, whose names will subsequently be disclosed if their outstanding dues remain unpaid.

In a significant enhancement of its collection capabilities, the SMG will entrust the Korea Customs Service with the disposition of delinquent taxes. This partnership is particularly noteworthy because the Customs Service possesses strong investigative and enforcement powers, often dealing with complex financial assets and cross-border transactions. Their involvement is expected to allow for more aggressive and effective recovery actions, including the seizure of assets and other legal measures against those who have consistently failed to pay their taxes.

This announcement itself takes the form of a ‘public notification’ (공시송달, gongsi songdal), a specific legal procedure in Korea. It means that the notice is officially published for individuals who could not be directly contacted through conventional means (e.g., registered mail returned, unknown address). For these specific tax delinquents, this public notice serves as a legally binding final warning that the SMG’s heightened collection actions, including public name disclosure and Customs Service intervention, are imminent.

The SMG reiterates its unwavering commitment to ensuring tax compliance and fair taxation within the city. By utilizing all available legal and administrative avenues, including public shaming and leveraging the specialized enforcement capabilities of the Korea Customs Service, the city aims to create a stronger culture of tax responsibility and recover overdue funds essential for public services.

Source: 서울특별시 — Original Notice (Korean)