Korea, Cambodia to boost tax cooperation to fight illegal fund transfers

National Tax Service Commissioner (NTS) Lim Kwang-hyun, left, and his Cambodian counterpart, Kong Vibol, hold up a signed agreement during their meeting in Seoul, Monday. Courtesy of NTS

Korea's tax agency said Tuesday it has signed an agreement with Cambodia to strengthen information-sharing efforts aimed at combating illegal fund transfers and offshore tax evasion.

The agreement was signed by Lim Kwang-hyun, commissioner of the National Tax Service (NTS), and his Cambodian counterpart, Kong Vibol, during their meeting in Seoul on Monday, the NTS said.

Lim emphasized the importance of active cooperation between the countries' tax authorities to effectively respond to cross-border crimes, including illegal transfers of funds and offshore tax evasion through the concealment of income and assets.

The NTS said it has been holding regular working-level meetings with Cambodian tax officials to bolster information-sharing mechanisms, noting that Cambodia is not a signatory to the multilateral agreement on the automatic exchange of financial account information.

The Seoul government has intensified scrutiny of alleged money laundering following a governmentwide review of Korean nationals suspected of involvement in online scams operated by criminal organizations based in the Southeast Asian country late last year.