1 Billion Won in Cash Found Packed in Travel Bag at Home of 6.4 Billion Won Tax Delinquent

The National Tax Service (NTS) and the Korea Customs Service (KCS) announced today (July 23) that as a result of a joint search conducted last month targeting 16 high-value and malicious tax delinquents, they seized a total of 1.3 billion won in hidden assets and secured installment payment agreements from some.

Individual A, a man in his 40s who operates an e-cigarette trading business, had his cash and checks worth over 1 billion won seized after packing them into a travel bag.

He became a target of tax authorities after failing to pay a total of 6.4 billion won in individual consumption and value-added taxes by falsely reporting raw materials and underreporting sales.

The joint NTS-KCS search team raided A's home in Seoul, but because A's mother refused to open the door even after a two-hour standoff and the dispatch of police officers, they ultimately entered by force.


A's mother protested against the joint search team, calling it "unauthorized entry," and refused to unlock the travel bag found in the main bedroom.

The joint search team seized the travel bag entirely, opened it, and discovered and confiscated a total of 1.02 billion won, consisting of 540 million won in hidden cash bundles and 480 million won in check bundles.

Targets of joint searches like individual A are malicious delinquents who simultaneously owe national and customs taxes, yet intentionally fail to pay their delinquent taxes despite having the ability to pay, all while leading a luxury lifestyle.

The NTS exchanged data on asset concealment practices, luxury lifestyles, and actual residence analysis, while the KCS shared core asset concealment information such as addresses registered under unique customs clearance symbols.

Regional tax offices and customs houses precisely analyzed the data, and finalized the search targets and locations through stakeouts and inquiries.

Ultimately, eight joint search teams, each consisting of around 10 personnel according to the delinquents' jurisdictions, were formed to initiate the searches.


Individual B, a person in their 50s who failed to pay 120 million won in national and customs taxes including unreported capital gains tax from land transfer, was selected as a search target due to living a luxurious lifestyle, having left the country 127 times over the past five years.

Following a search of B's home in Hwaseong, Gyeonggi Province, authorities seized five luxury bags, one luxury bracelet, eight watches, and 15 promissory notes worth 500 million won from a carrier, and proceeded to collect on them sequentially.

Individual C, a 60-year-old mold manufacturer, had long failed to pay about 550 million won in value-added and corporate taxes.

The two agencies selected C as a joint search target, suspecting that he was evading forced collection through a sham divorce, given that he actually resided in a large apartment in Daegu owned by his divorced spouse.

Right before authorities forced open the door, the former spouse opened it, and officials discovered cash-equivalent assets worth 9 million won kept in a personal safe, along with gold rings and other items totaling 26 million won.

Although the former spouse claimed, "These are my jewelry items," authorities provided guidance on the seizure release procedure and confiscated all discovered assets.


Ha Yu-jung, Director General of the Auditing and Inspection Bureau at the Korea Customs Service, explained, "Assets found at locations presumed to be a delinquent's living quarters will have their seizure lifted under the National Tax Collection Act if it is clearly proven that they belong to a third party, but until then, they are treated as related to the delinquent and are seized."

Building on these results, the NTS and the KCS plan to regularize the exchange of information regarding hidden assets and living conditions of individuals who owe both national and customs taxes, ensuring continued joint responses.

Kang Jong-hoon, Director General of the Collection and Legal Bureau at the National Tax Service, evaluated, "While the two agencies have previously cooperated on tax refunds and other matters, this operation was significant because each agency shared its superior information to conduct a more sophisticated search. The success rate of this search was around 80%, yielding much better results than solo searches."

(Photo provided by NTS, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.