1 Billion Won in Cash Found Packed in Travel Bags 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 a joint search targeting 16 high-value and chronic tax delinquents last month resulted in the seizure of a total of 1.3 billion won in hidden assets, alongside installment payment commitments from some individuals.

Person A, a man in his 40s engaged in e-cigarette trading, had over 1 billion won in cash and checks stashed inside travel bags before they were seized.

A had incurred a total of 6.4 billion won in arrears, including individual consumption tax and value-added tax, by falsely declaring raw materials and underreporting sales, making him a target for tax authorities.

The joint search team from the NTS and KCS raided A's home in Seoul. However, A's mother refused to open the door even after a two-hour standoff and the dispatch of police officers, prompting authorities to force their way in.


A's mother protested against the joint search team, calling it an "unauthorized intrusion," and refused to unlock the travel bags found in the master bedroom.

The joint search team seized the travel bags entirely and opened them, discovering and confiscating a total of 1.02 billion won, consisting of 540 million won in cash bundles and 480 million won in check bundles.

Targets of joint searches like person A are habitual delinquents who owe both national and customs taxes, yet lead luxury lifestyles while deliberately withholding payment despite having the ability to pay.

The NTS shared analytical data on hidden asset concealment, luxury lifestyles, and actual residences, while the KCS exchanged core asset concealment information, such as addresses registered under custom clearance codes.

Regional tax offices and customs houses conducted detailed data analysis, followed by stakeouts and inquiries to finalize the search targets and locations.

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


Person B, a person in their 50s who failed to pay 120 million won in national and customs taxes—including omissions on capital gains tax from land transfers—was selected as a search target due to enjoying a luxury 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 5 designer bags, 1 luxury bracelet, 8 watches, and 15 promissory notes worth 500 million won from a carrier, and proceeded with sequential collection.

Person C, a mold manufacturer in his 60s, had long failed to pay 550 million won in value-added and corporate taxes.

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

Just before authorities forced open the door, the ex-spouse opened it, and a search uncovered 9 million won in cash equivalents kept in a personal safe, along with gold rings and other items totaling 26 million won.

Although the ex-spouse claimed, "These are my jewelry items," authorities provided instructions on the procedure to lift the seizure and confiscated all discovered assets.


Ha Yu-jung, Director of the Audit Bureau at the Korea Customs Service, explained, "Assets found at locations presumed to be the living quarters of a delinquent will be released from seizure if it is clearly proven under the National Tax Collection Act that they belong to a third party, but until then, they are treated as connected to the delinquent and seized."

Building on this success, the NTS and KCS plan to regularize the exchange of information regarding hidden assets and living conditions of individuals defaulting on both national and customs taxes to continue joint responses.

Kang Jong-hoon, Director General of the Collection and Legal Bureau at the NTS, evaluated, "While the two agencies previously cooperated in areas such as tax refunds, this operation was significant because each agency shared its superior intelligence for a more sophisticated search. The success rate of this search was around 80%, yielding vastly superior results compared to independent searches."

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