SEOUL, South Korea – The National Tax Service (NTS) of South Korea has intensified its crackdown on tax evaders, recovering over 2.5 trillion won ($1.8 billion) in unpaid taxes through asset tracking investigations this year.
The agency announced on Monday that it has successfully tracked down 696 high-net-worth tax evaders who had been hiding their assets through various sophisticated methods. These individuals employed tactics such as concealing large sums of cash in kimchi containers or safes, converting assets into cryptocurrencies, and transferring property to family members.
One notable case involved a 92-year-old man, identified only as "A," who owed tens of billions of won in capital gains tax after selling his land. His children attempted to evade tax collection by withdrawing the sale proceeds in small amounts from A's bank account and transferring the money to multiple accounts. The NTS tracked down the children through bank CCTV footage and conducted simultaneous raids on their residences, seizing 1.1 billion won in cash, gold bars, and other assets.
The NTS also highlighted the increasing use of cryptocurrencies by tax evaders to conceal their assets. The agency recovered 28.7 billion won from taxpayers who had converted their assets into various cryptocurrencies and transferred them to family members' wallets. For instance, a construction company owner who owed hundreds of millions of won in capital gains tax purchased numerous cryptocurrencies with the proceeds from selling apartment pre-sale contracts and transferred them to his mother and cousin's wallets. The NTS used cryptocurrency tracking software to identify these transactions and is now suing the mother and cousin to recover the unpaid taxes.
Other cases include a real estate developer who hid millions of won in slot machine winnings, a urologist who concealed assets in overseas insurance policies under his spouse's name, and a cosmetics manufacturer who enjoyed a luxurious lifestyle while owing tens of millions of won in taxes.
The NTS has encouraged the public to report information about tax evaders and offers rewards for tips that lead to successful tax collections. The agency has published a list of high-profile tax evaders on its website to encourage public vigilance.
"Tips from the public play a crucial role in helping us track down hidden assets of high-net-worth tax evaders," said an official from the NTS. "We will continue to employ advanced investigative techniques and work closely with financial institutions to combat tax evasion."
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