23-11-2024 (SEOUL) South Korean tax authorities have exposed nearly 700 high-income tax evaders in a sweeping investigation that revealed elaborate schemes of wealth concealment, including millions of won stashed in traditional kimchi containers and luxury car leasing arrangements.
The National Tax Service (NTS) announced on 21 November that their crackdown had identified 696 individuals employing various methods to evade taxation, resulting in the recovery of approximately 2.5 trillion won (S$2.4 billion) as of October.
Among the most striking cases, investigators discovered a 92-year-old property seller who attempted to dodge capital gains tax by distributing proceeds across multiple bank accounts belonging to his children. Coordinated raids on four properties revealed 1.1 billion won in cash and gold bars ingeniously concealed in household items, including traditional kimchi storage containers.
In another notable case, a cosmetics company chief executive maintained a lavish lifestyle, complete with a leased Rolls-Royce and a premium Seoul apartment, while accumulating tens of billions of won in unpaid taxes. Authorities have seized the property and are investigating the source of funds used for the luxury car arrangements.
The investigation exposed diverse evasion tactics, including a real estate marketing executive who attempted to conceal gambling winnings from Kangwon Land Casino by converting them into cashier’s cheques and foreign currency. The surge in cryptocurrency values has also attracted tax evaders, with the NTS reporting the seizure of 28.7 billion won in digital assets during the latter half of 2024.
The tax authority’s findings detailed three main categories of evaders: 216 individuals who concealed assets despite having payment capability, 81 who conducted fraudulent family wealth transfers, and 399 who maintained extravagant lifestyles while avoiding tax obligations.
The NTS has pledged to maintain aggressive pursuit of hidden assets, emphasising their commitment to ensuring tax compliance among high-income individuals.
