South Korea's National Tax Service collected 620 billion won from tax evasion investigations during the first half of the year, targeting price manipulation, stock market irregularities, and real estate violations. The agency announced the results during a briefing at the Blue House Yeongbingwan on the 15th, stating it will continue strict enforcement until markets stabilize. The enforcement campaign is part of the NTS's broader transformation into an integrated revenue service managing both tax and non-tax government income, including the establishment of a 10,000-person team to address 130 trillion won in tax delinquencies.
NTS Collects 620 Billion Won from First-Half Tax Evasion Investigations
The National Tax Service reported collecting a total of 620 billion won through strict investigations of price manipulation, stock market misconduct, and real estate tax evasion over the past six months. The agency emphasized that enforcement actions will continue until economic stability is restored and markets normalize.
Price Manipulation Cases Yield 319.5 Billion Won in Collections
The NTS investigated 117 cases of price manipulation tax evasion, collecting 319.5 billion won and imposing criminal penalties in 33 cases. These cases involved businesses engaging in price-fixing and hoarding practices that contributed to inflation instability.
Stock Market and Real Estate Enforcement Results
Stock market tax evasion investigations covered 27 cases, resulting in collections of 257.6 billion won and 38 criminal penalties. The cases involved market manipulation and tunneling schemes that undermined capital market order. Real estate tax evasion enforcement included 398 investigations, collecting 48.1 billion won with 10 criminal penalties imposed.
NTS Announces Continued Enforcement Until Market Stabilization
The agency stated it will continue thorough investigations of tax evasion that threatens economic stability, including price manipulation causing inflation, unfair stock market practices disrupting capital markets, and offshore tax evasion triggering currency instability. The NTS will also target corporate fund misappropriation involving ultra-luxury homes and supercars registered under corporate names. The agency plans to analyze reports submitted to its Real Estate Tax Evasion Reporting Center and pursue property transactions that circumvent government loan regulations, irregular dealings following the resumption of multiple-home ownership taxes, and misuse of business loans.
10,000-Person Team to Manage 130 Trillion Won in Tax Delinquencies
The NTS will operate a 10,000-person delinquency management team to establish a systematic verification process for 130 trillion won in tax arrears. The initiative aims to achieve five policy objectives: realizing tax justice, securing fiscal revenue, creating productive jobs, comprehensively clearing delinquencies, and identifying welfare beneficiaries. The agency is pursuing integration of collection systems for non-tax government revenues currently managed under over 300 separate laws, with full implementation of unified collection scheduled for next year.
Tax Relief Measures for Crisis-Hit Businesses and Small Merchants
The NTS will provide liquidity support to crisis-hit companies and small business owners facing difficulties from high exchange rates and oil prices through payment deadline extensions and early tax refund disbursements. Tax audits for small merchants with sales under 1 billion won will be suspended until year-end. Small and medium enterprises relocating to provincial areas will receive dedicated tax consultation services, priority processing for deductions and exemptions, and tax audit grace periods extended up to three years.
NTS Commissioner Lim Gwang-hyun stated, "Over the past six months, changes initiated from citizens' voices to eliminate irregularities and privileges have led to results across various sites. In the second half, we will become an NTS that supports the great leap forward of 'Irreplaceable South Korea' with achievements exceeding public expectations."
FAQ
What types of tax evasion did the NTS investigate during the first half?
The National Tax Service investigated three main categories: price manipulation tax evasion involving price-fixing and hoarding (117 cases), stock market misconduct including market manipulation and tunneling (27 cases), and real estate tax evasion (398 cases). The investigations resulted in total collections of 620 billion won.
How will the NTS manage the 130 trillion won in tax delinquencies?
The NTS will operate a 10,000-person delinquency management team to establish a systematic verification process for the 130 trillion won in tax arrears. The agency is integrating collection systems for non-tax government revenues currently managed under over 300 laws, with full unified collection implementation scheduled for next year.
What tax relief measures are available for struggling businesses?
The NTS will provide payment deadline extensions and early tax refund disbursements to companies and small business owners affected by high exchange rates and oil prices. Tax audits for small merchants with sales under 1 billion won are suspended until year-end. Small and medium enterprises relocating to provincial areas receive dedicated consultation services, priority deduction processing, and tax audit grace periods extended up to three years.
