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South Korean Tax Officials Seize Crypto from Residents
South Korean tax officials in the city of Pohang are set to seize crypto from 5,208 residents who failed to pay local taxes. This move is part of a national crackdown on tax evasion.
Local Tax Arrears Collection Drive
On April 7, the city’s Nam Gu (Southern District) Office announced the initiation of its “2024 Local Tax Arrears Collection Comprehensive Plan” drive. The individuals targeted in this initiative have evaded local tax bills amounting to $370 or more.
National Crackdown on Tax Evasion
The tax officials in Nam Gu are aiming to collect nearly $5 million in tax arrears from citizens, with an estimated $12.2 million in unpaid taxes within the city. Data from major domestic crypto exchanges such as Bithumb, Upbit, Korbit, and Coinone have been analyzed to identify 5,208 residents who own crypto assets but have fallen behind on their tax payments.
Seizure and Liquidation of Crypto Assets
The city has decided to take action by actively collecting delinquent taxes through the seizure of individuals’ crypto assets. Once ownership by tax evaders is confirmed, the city will immediately freeze transaction activities like sales or withdrawals. Those who do not voluntarily settle their tax bills even after seizure will have their virtual assets sold on the exchange market.
Enforcement and Future Strategies
Won Ki-ho, the head of the tax department at the Nam Gu Office, emphasized the city’s commitment to raising awareness among delinquent taxpayers. Customized collection techniques suitable for the digital age will be introduced to ensure compliance with tax regulations.
Last month, tax officers in the city of Hwaseong seized over $768,500 worth of crypto from tax dodgers, with a single individual having $567,000 frozen. In a similar crackdown, tax officials in Incheon seized $375,000 worth of coins in January.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
