Gwacheon City has announced that it will introduce Korea’s first municipal cryptocurrency seizure system to track and confiscate digital assets from high-value and habitual tax delinquents. With the increasing use of cryptocurrency as a means to conceal assets, the city aims to move beyond the conventional notification system via Gyeonggi Province and establish an independent system to effectively counter tax evasion.
The system will primarily target 361 individuals who owe more than KRW 3 million in unpaid local taxes, with total delinquent taxes amounting to approximately KRW 18.8 billion. By cross-referencing data from major domestic cryptocurrency exchanges with delinquent taxpayer records, the city plans to identify and seize concealed assets. This marks the first time a local government in Korea has implemented such a system.
Before executing seizures, Gwacheon City will issue pre-seizure notifications, encouraging tax delinquents to voluntarily settle their unpaid taxes and minimize disputes. If payment is not made within the specified deadline, seizure and collection procedures will proceed within the first half of the year.
Over the past five years, Gwacheon City has confiscated approximately KRW 3 billion worth of cryptocurrency from high-value tax delinquents, collecting KRW 1.1 billion in delinquent taxes in 2024 alone. With the introduction of this system, the city seeks to uphold tax justice, enforce strict measures against delinquents, and prevent tax evasion through digital assets.
The new system is expected to serve as a pivotal turning point in preventing tax evasion via cryptocurrency and ensuring fair taxation.
