Gyeonggi Province First Among Metropolitan Local Governments to Recover Overdue Taxes from Regional Financial Institutions

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province conducted a comprehensive investigation of hidden assets of local tax defaulters at Saemaul Credit Unions, Unit Agricultural Cooperatives, credit unions, and other secondary financial institutions—particularly regional financial institutions—and collected over 700 million won in taxes.

Gyeonggi Province is the first metropolitan local government to conduct a comprehensive asset investigation on tax defaulters at regional financial institutions.

Beginning in December of last year, Gyeonggi Province investigated investment and deposit account details at regional financial institutions for 289,824 local tax defaulters and seized financial assets worth 12 billion won from 3,792 individuals in February of this year.

Over approximately 10 months, the province encouraged voluntary payment and pursued collection sequentially in accordance with the Local Tax Collection Act for certain assets. As a result, it collected 7.342 billion won in overdue taxes from 3,212 defaulters, it announced on the 30th.

Gyeonggi Province has 388 regional financial institutions, including 104 Saemaul Credit Unions, 157 Unit Agricultural Cooperatives, 84 credit unions, and 43 other organizations including forest cooperatives.

Primary financial institutions allow immediate deposit seizure through the local tax computer system, but secondary financial institutions such as regional financial institutions lack such systems, and the province explained that defaulters use them as places to conceal assets.

Specific cases show that Mr. B, a resident of Yeoncheon, had defaulted on 1.3 million won in property taxes. It was confirmed that he held over 200 million won in deposits at a regional unit agricultural cooperative, and he paid the full amount.

Ms. A, a resident of Gwangju, Gyeonggi Province, defaulted on 900,000 won in property taxes starting in 2016.

Despite continued payment reminders, Ms. A claimed financial difficulties and persisted until this investigation revealed that she had invested 100 million won in shares at a Saemaul Credit Union. She then paid the full 900,000 won in overdue taxes.

Choi Won-sam, director of the Gyeonggi Province Tax Justice Division, said, "For chronic defaulters, we will collect overdue taxes through strong delinquency enforcement measures, and for defaulters facing financial difficulties, we plan to provide maximum support within permitted systems."