Cryptocurrency assets worth $890,000 have been seized from the wallets of people who have failed to pay local taxes in a South Korean province.
In North Gyeongsang where a new campaign has been set up to collect local tax arrears, with a target set of reaching $136 million by the end of the year.
A local publisher, called Daekyung Ilbo, writes that the province and its 22 cities and counties will entered a two-month period of collecting these arrears which will run until December 13.
According to the newspaper, the area has collected 1.2 billion won in virtual currency (roughly $889,300 USD), 500 million won in court deposits ($367,620 USD), and 500 million won in financial assets.
This intense crackdown could see more money and assets seized as the campaign gathers pace.
Tax arrears group formed in South Korea to seize crypto assets
The operation has been run by a network of ‘Local Tax Arrears Organization Group’ which is headed by local government leaders and staffed by tax officials to carry out systematic collections.
The article, translated into English, says people in arrears of more than 30 million won (just over $22,000 USD) could see a request for a ban on departure from the country by the Ministry of Justice.
This latest seizing and plans for more come after another South Korean region announced it would be doing intensive collection activities back in April. It’s believed that the central government had granted local city authorities the power to freeze wallets, seize tokens, and even liquidate coins.
It’s not the first time that the South Korean local tax bodies have focused on crypto assets either, as it was in 2023 when confiscated crypto assets worth $28.4 million were seized from people who were trying to avoid paying taxes.
The campaign began as early as 2020, showing that local tax collection has been a focus in South Korea for some time.
