South Korean City Planning To Seize Crypto Assets of 5,208 Tax-Delinquent Residents: Report

A South Korean city is reportedly planning to seize the digital assets of more than 5,000 residents who owe back taxes.

According to a new report from the Korean newspaper Daegu Shinmun, the Nam-gu (south district) Office in Pohang intends to go after digital assets owned by residents who owe more than 500,000 won or $369 in taxes.

Officials believe 5,208 tax delinquents appear to have digital assets on four South Korean cryptocurrency exchanges – Bithumb, Upbit, Corbit and Coinone – based on transaction data.

If officials confirm a tax delinquent owns digital assets on these platforms, they will reportedly freeze the account, prohibiting any trades or withdrawals. If the tax bill is not paid, the officials plan to seize and sell the digital assets to cover what is owed.

The Korean news outlet Kyongbuk Maeil Shinmun reports that the effort is being called the “2024 Local Tax Delinquent Collection Comprehensive Plan” and aims to collect 6.6 billion won or $4.9 million in taxes past due. City officials estimate residents have failed to pay about 16.5 billion won ($12.2 million) in taxes.

Says Jeong Hae-cheon, head of the Nam-gu District Office.

“We will raise awareness among chronic delinquents and prevent faithful taxpayers from feeling lost by not only seizing and selling virtual assets but also introducing various customized collection techniques suited to the digital age.”

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