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Busan Metropolitan City Collects KRW 47.5 Billion in Local Tax Arrears in First Half of 2025, Recording Significant Results in Collection Activities

Aug 19, 2025 16  Views
◈ As of the end of June, KRW 47.5 billion in local tax arrears (previous year’s tax) has been collected in 2025 — an increase of KRW 10.5 billion compared to the same period last year

◈ The City Hall collected KRW 8.8 billion from seven delinquent taxpayers with arrears of more than KRW 1 billion; for delinquent corporations, rental claims were seized and rents were deposited with the court, enabling the city to immediately claim disbursement and receive distribution — resulting in the collection of KRW 5.3 billion in the first half of 2025 and a total of KRW 6.7 billion over two years

◈ In the second half of the year, the city plans to continue pursuing hidden assets of unscrupulous high-value tax evaders through home searches, detention of those concealing assets, and cancellation of false mortgage registrations, thereby ensuring tax justice by tracking the hidden assets of tax delinquents who have the ability to pay but intentionally evade payment
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□ Busan Metropolitan City (Mayor Park Heong-joon) has achieved significant results in collecting local tax arrears in the first half of 2025 by implementing strong tax collection measures targeting delinquent taxpayers.


□ The city announced that, as of the end of June, KRW 47.5 billion in local tax arrears from the previous year had been recovered through public auctions of real estate, seizure of claims, and collection measures.
○ This represents an increase of KRW 10.5 billion compared to the same period last year.


□ In particular, as the carry-over arrears (taxes not collected in the current year and rolled over to the following year) have continued to increase over the past three years, the city activated a dedicated collection task force (TF) for delinquents with arrears of more than KRW 10 million and implemented strong taxation measures such as public auctions of real estate to reduce this carry-over amount. As a result, the City Hall collected a total of KRW 8.8 billion from seven delinquent taxpayers with arrears of more than KRW 1 billion.
○ In one case, Corporation “A,” which was the project owner of a newly built building in Haeundae, had failed to pay tens of billions of won in acquisition tax due to unsold units and a lack of funds. The city confirmed that Hotel “B” was leasing the building and paying rent to the delinquent corporation. The city seized the corporation’s rental claim and the hotel deposited the rent with the court. The city then immediately filed for disbursement and collected taxes that had been in arrears for more than three years. Through this process, the city collected KRW 5.3 billion in the first half of 2025 and a total of KRW 6.7 billion over two years, successfully recovering chronic delinquent taxes that could have turned into long-term arrears.
○ In another case, Mr. “C,” who had failed to pay local income tax on capital gains from real estate sold in September 2022, had deliberately evaded payment for more than two years, despite owning other real estate and having the ability to pay. The city seized the relevant property and immediately sought a public auction. A few days later, Mr. “C’s” son visited City Hall and paid the full amount.


□ In the second half of the year, the city plans to implement all possible legal measures against malicious delinquent taxpayers who intentionally avoid payment despite having sufficient capacity to do so. To this end, the city will designate a period for intensive collection of local tax arrears, with the full participation of the city and all 16 districts and counties, to actively recover delinquent taxes and to uphold tax justice so that sincere taxpayers do not feel unfairly treated.
○ In particular, the city intends to further strengthen its response to unscrupulous high-value tax delinquents in the second half of the year. Home searches will be conducted for those living in luxury homes or owning high-value vehicles, and detention provisions newly introduced in the Local Tax Act will be actively applied to high-value delinquent taxpayers who maliciously evade payment, thereby promoting fairness with sincere taxpayers.
○ In addition, the city will pursue the cancellation of false or expired mortgage registrations that remain as senior liens on real estate through litigation and other means, and will further strengthen measures such as the seizure and collection of financial assets including deposits, insurance proceeds, virtual assets, and convertible bonds, the provision of public record information, travel bans, and the disclosure of names to ensure tax justice.


□ Kim Kyung-tae, Director General of Planning and Coordination, stated, “We will operate the dedicated collection task force (TF) for high-value tax evaders on a permanent basis, investigating hidden assets 365 days a year and applying continuous pressure through home searches and other measures to expand and strengthen the collection of high-value delinquent taxes,” adding, “We will do our utmost to foster a social environment where sincere taxpayers are respected and to build a sound municipal finance by securing tax revenue, thereby creating Busan, Your Home for Today and Beyond.

This content has been translated by AI. Please refer to the attached original Korean version for accuracy if needed.