Jeju City Takes Action Against Tax Evasion
In a decisive move against tax evasion, Jeju City has concluded an extensive investigation into nearly 3,000 residents suspected of neglecting tax payments, focusing on their potential cryptocurrency holdings. Reports from local media outlet Newsis indicate that tax delinquents in the city have been profiting from digital currencies, which has prompted local authorities to take action.
Investigation Findings
On August 16, officials in Jeju announced that they had completed a thorough investigation into 2,962 individuals with significant outstanding tax obligations. These individuals owe more than 1 million won (approximately $719) each in unpaid taxes and fees, with their collective tax debts reaching about 19.7 billion won, or around $14.2 million.
Utilization of Cryptocurrency Data
Under South Korean regulations, tax authorities are permitted to demand information from domestic cryptocurrency exchanges about users suspected of tax evasion. This investigation utilized data from the country’s four leading crypto platforms: Bithumb, Upbit (operated by Dunamu), Coinone, and Korbit. Following their analysis, investigators found that 49 of the targeted residents possessed cryptocurrency valued at 230 million won (roughly $165,458) across their accounts on these exchanges.
Actions Taken by Jeju City
Consequently, Jeju City has initiated processes to freeze and seize these digital assets by designating the exchanges as third-party debtors. Officials plan to notify the individuals involved that if they fail to promptly resolve their tax liabilities, the city will proceed with the liquidation of these crypto holdings.
Utilizing advanced AI tools to reveal concealed crypto assets, Jeju’s tax chief, Hwang Tae-hoon, expressed satisfaction with the keen oversight in identifying tax evaders.
This crackdown follows a similar effort earlier this year in Seoul’s affluent Gangnam District, where tax officials successfully recovered over $144,000 from tax offenders.
