Jeju authorities have begun freezing cryptocurrency from individuals accused of evading taxes. This decision is part of a broader initiative to recover unpaid tax revenues.
Investigation of Tax Delinquents in Jeju
According to a recent report from a local outlet, tax officials in Jeju investigated 2,962 individuals who collectively owed 19.7 billion won ($14.2 million) in unpaid taxes. The investigation utilized data from the country's four largest exchanges—Bithumb, Upbit, Coinone, and Korbit.
Strengthening Crypto Tax Measures in South Korea
The investigation revealed that 49 individuals possessed a combined $166,269 worth of digital assets. As a result, Jeju City's Tax Division has designated the exchanges as third-party debtors, allowing coins to be frozen and liquidated to cover some outstanding balances. Tax Division chief Hwang Tae-hoon stated that the city aims to intensify its pursuit of hidden tax sources using AI-driven information analysis.
Cryptocurrency and Taxation History in Jeju
These measures are not isolated. South Korea has strengthened its approach to crypto taxation since 2021. Other cities have pursued similar paths, such as Paju, which announced plans to confiscate the digital assets of residents with overdue taxes.
Thus, Jeju is actively leveraging cryptocurrency as a tool to ensure tax compliance, reflecting a trend of integrating new technologies into tax strategies.
