A special National Tax Service unit launched to track high-value chronic tax delinquents has seized cash and valuables worth 8.1 billion won ($5.6 million) during a four-month intensive search operation. The 492 seized items will be sold through two online public auctions next month.
The NTS announced on the 26th that its "Special Task Force for Tracking High-Value Tax Delinquents," launched in November last year, seized 1.3 billion won in cash and 6.8 billion won worth of physical assets including gold toad figurines from 124 individuals.
"High-value tax delinquents obstructed searches by engaging in physical altercations with enforcement officers or refusing to open doors, but we collected substantial delinquent taxes through persistent tracking," an NTS official said.
One delinquent, identified as Mr. A, who owed billions of won in capital gains tax on real estate, was targeted after excessive cash usage was detected. When task force members entered his ex-spouse's residence with police assistance, family members resisted by blocking the door. However, Mr. A's daughter was caught attempting to leave with a bag claiming she was going to work, which contained 100 million won in cash bundles. A total of 160 million won was seized.
At the home of another delinquent, Mr. B, who owed hundreds of millions of won, a bedroom safe yielded 151 don (approximately 130 million won) of pure gold—including a 40-don golden toad, six 10-don gold bars, and two 10-don golden keys—along with 6 million won in cash. The NTS said it launched the search after detecting signs of lavish lifestyle including frequent overseas travel.
Seized items will be sold to the public through online auctions. Bidding is available via PC or smartphone, though tax officials and their family members are prohibited from participating.
A Rolex Day-Date watch with an estimated value of 32-60 million won has a starting price of 20 million won. An Hermès Birkin 35, estimated at 8-23 million won, starts at 6.5 million won. Works by renowned artists Julian Opie and Yayoi Kusama will also be offered.
The first auction will be held on the 11th of next month, featuring 166 items including 35 luxury bags and wallets, 11 high-end watches, 9 artworks, and 110 bottles of premium alcohol including wine. A preview exhibition will run March 6-10 at Seoul Auction's Gangnam Center. The second auction will offer 326 items, with an exhibition from the 20th to 24th followed by bidding on the 25th.
This measure follows President Lee Jae-myung's directive during a December briefing last year, when he stated that "rather than letting seized items from tax delinquents sit idly, we should proceed with disposition and forced sales."
"This auction is aimed at strictly responding to high-value tax delinquents who have hidden expensive possessions and creating a fair society," NTS Commissioner Lim Kwang-hyun said on Facebook. "Proceeds from the auction will go to the national treasury and be used as valuable resources for the public."