South Korean Province Seizes Crypto Worth $890,000 from Tax Dodgers

South Korea Tax

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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October 14, 2024 23:00 EDT

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A South Korean province has seized cryptoassets worth $890,000 from the crypto wallets of residents who have failed to pay local taxes.

Per Daekyung Ilbo, North Gyeongsang Province has set itself a target of collecting local tax arrears worth around $136 million before the end of the year.

South Korean Province: ‘Intense Crackdown’ Begins

According to its latest updates, the province had collected over $35 million worth of that total at the end of August this year.

And crypto-holding tax evaders will be bracing themselves for more scrutiny. The media outlet reported that the province and “22” of its biggest “cities and counties” will now begin “two months of intensive settlement recovery efforts.”

North Gyeongsang Province says it hopes to hit its target with the campaign, which will run from October 14 to December 13.

The province says it has formed a network of “Local Tax Arrears Collection Teams,” headed by local government leaders and staffed by local tax officials.

These teams will be “mobilized to carry out systematic and comprehensive” tax “collection activities.”

The province said it would “promptly proceed” with “the sale process for the seized assets.”

In the case of crypto holders, this would likely entail the liquidation of coins on the crypto exchanges where they are seized.

‘Pay Up, Or We’ll Sell Your Crypto’

South Korean law allows local tax bodies to demand domestic crypto exchanges hand over details about their clients.

Local governments then match up crypto wallet details with their own data about unpaid tax bills.

In the past, they have also given tax dodgers an ultimatum. If they do not settle their bills in fiat, tax officers will sell their coins and confiscate the proceeds.

Provinces and metropolitan cities around the country have embarked on similar crackdowns.

These have already seen millions of dollars worth of Bitcoin, Ethereum, and high-cap altcoins liquidated.

“In order to boost fairness for honest taxpayers, we plan to take firm and strong measures over the next two months. We also urge delinquent taxpayers to pay their bills promptly. […] This will help prevent the seizure and sale of their assets.”

Kim Ho-jin, Head of North Gyeongsang Provincial Planning and Coordination Office