Im Kwang-hyun, head of the National Tax Service, stated that the decision by Kwon Hyuk, chairman of the Sido Group, to pay off his tax delinquency of 393.8 billion won (approximately $300 million) accumulated over 15 years was influenced by the agency's efforts to seize his overseas assets.
During an appearance on MBC Radio's 'Kim Jong-bae's Focus,' Im said, "It seems that our intention to seize overseas assets was a burden for him."
Previously, the National Tax Service had collaborated with local tax authorities in Panama and Liberia to ascertain the ownership status of Kwon's overseas vessels. Im personally met with tax officials from those countries to request cooperation in resolving the high tax delinquency.
Im explained that, through cooperation with foreign tax authorities, the agency was able to track Kwon's assets while its employees continuously persuaded him to pay the delinquent amount. He also suggested that Kwon could return to Korea and resume his business after settling his tax obligations. However, Kwon's return has not yet been confirmed.
As a result of the National Tax Service's special task force's tracking efforts, Kwon submitted a payment plan for the full amount of his personal tax delinquency, which accumulated since 2011. In July, he made an initial cash payment of 100 billion won and offered five vessels located overseas as collateral for the remaining amount.
The National Tax Service believes that the value of the vessels used as collateral significantly exceeds the remaining tax delinquency. The estimated value of the five vessels is over 300 billion won, and there are no senior claims against them, indicating that there should be no issues in securing the delinquent amount in the future.
A significant portion of the 393.8 billion won is attributed to penalties and interest accrued over the long period of non-payment. Im noted that about half of the total delinquency consists of penalties and interest, reflecting the burden of not paying taxes for an extended period.
Im also announced plans to strengthen investigations into tax evasion practices by corporate owners who misuse corporate assets for personal purposes.
Despite advancements in information technology and increased payment transparency reducing the size of the underground economy, he indicated that irregular behaviors, such as using corporate-owned supercars for personal use or receiving luxury homes funded by company money, still pose tax evasion risks.
Im added that for companies exhibiting such behaviors, the agency would enhance verification by examining the potential for tax evasion by both the owners and the companies as a whole.
* This article has been translated by AI.
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