NTS, Customs Conduct First Joint Raid... Secure 80% of Tax Debts Owed by Wealthy Evaders

The National Tax Service (NTS) and Korea Customs Service (KCS) announced on the 23rd that they conducted their first joint raid targeting high-value and malicious tax evaders. The two agencies collaborated by closely linking their tax delinquency tracking capabilities and intelligence on hidden assets. The joint task force formed eight teams, each consisting of about 10 members, to conduct the raids based on the jurisdiction of the defaulters.

The raids resulted in the seizure of hidden assets worth a total of 1.3 billion won, including 1 billion won in cash and checks, as well as luxury handbags. In the case of Mr. A, a tax defaulter involved in the electronic cigarette trade, assets worth 1.02 billion won—including 540 million won in cash and 480 million won in checks—were discovered inside a travel carrier that was forcibly opened at his residence. Mr. B, a tax deferrer in the auto parts manufacturing sector, was found to be concealing assets worth 26 million won, including over a dozen bottles of premium liquor and cash assets, while living in a 58-pyong apartment under suspicious circumstances of a fake divorce.

Mr. A, who is in his 50s and owed 120 million won in national taxes and customs duties, lived a lavish lifestyle, traveling abroad 127 times over the past five years. Authorities seized high-end bags, bracelets, watches, and IOUs worth 500 million won from his home in Hwaseong, Gyeonggi Province.