South Korean City Takes Initiative to Recover Tax Debts Through Crypto Seizures

A city in South Korea is getting ready to take firm action against tax offenders who possess digital assets in an audacious attempt to collect past due taxes. According to a report by Daegu Shinmun, the Nam-gu Office in Pohang intends to confiscate the digital assets of over 5,000 citizens who have significant amounts of unpaid taxes.

The article states that those who owe more than $369 in taxes, or more than 500,000 won, would be pursued by the Nam-gu Office. Through transaction data, the four main cryptocurrency exchanges in South Korea—Bithumb, Upbit, Corbit, and Coinone—identify the citizens who are the target of the crackdown.

Freezing Assets for Settlement

Officials will take action to freeze tax offenders’ accounts, therefore stopping any trading or withdrawals, as soon as they are discovered to be holding digital assets on these sites. Authorities intend to sell off the digital assets to pay off the outstanding tax obligations if they are not paid in full with safeguard measures.

The initiative, dubbed the “2024 Local Tax Delinquent Collection Comprehensive Plan,” as reported by Kyungbuk Shinmun, aims to reclaim a staggering 6.6 billion won or $4.9 million in overdue taxes. City officials estimate that residents have amassed approximately 16.5 billion won ($12.2 million) in unpaid taxes.

Jeong Hae-cheon, head of the Nam-gu District Office, emphasized the importance of employing tailored strategies in the digital era to combat tax evasion effectively. He remarked, “We will raise awareness among chronic delinquents and prevent faithful taxpayers from feeling lost by not only seizing and selling virtual assets but also introducing various customized collection techniques suited to the digital age.”

In the quickly changing world of digital money, this action represents a proactive strategy to ensuring tax compliance as the authorities step up their efforts to combat tax evasion.