Tax agency launches outreach initiative to help overseas Koreans return home

National Tax Service (NTS) Commissioner Lim Kwang-hyun, front row center, poses with members of an outreach initiative for Korean emigrants and corporations abroad during the launch ceremony at NTS headquarters in Sejong City, Monday. Courtesy of NTS

The National Tax Service (NTS) said Tuesday it has launched an outreach initiative to clarify the country’s tax policies for Korean emigrants and corporations abroad and assist those considering bringing their assets back home.

The tax agency said it has formed a special team, K-Tax Angel, of officials with top-level expertise in property, cross-border taxation and other tax policies relevant to interested parties.

The team will provide tax consulting services in 10 countries, beginning in February in Thailand and the Philippines, and later expanding to the United States, Japan and other nations.

The initiative comes as the Lee Jae Myung administration pursues an expansionary fiscal policy and aims to boost taxable income.

Stricter measures on capital gains, inheritance and gift taxes, which are much higher than in other countries, have resulted in a tendency to keep assets abroad.

“In that regard, I urge team members to approach their duties as guardian angels for every overseas Korean, acting attentively and responsibly to ensure that they do not experience hardships or disadvantages due to tax issues,” NTS Commissioner Lim Kwang-hyun said during the launch ceremony at NTS headquarters in Sejong City.

The nation’s top tax official also expressed hope that the outreach initiative will help stabilize the Korean won’s volatility, which has been driven by the large outflow of assets being converted into U.S. dollars and held abroad.

NTS underscored that K-Tax Angel will focus on “delivering practical tax information and providing personalized consultations through briefings on topics of the greatest interest to targeted parties.”

It noted that long-term emigrants often wish to bring their wealth back to Korea after retirement but lack proper tax consultation.

It also highlighted a common misconception that returning would automatically trigger NTS investigations into the sources of their overseas assets, leading to a fear of taxes preventing them from returning home.

In addition to the initial 10 countries, NTS plans to expand its tax consulting services to other locations in the future.

To do so, it will conduct surveys through overseas diplomatic missions to assess the needs of individuals and businesses abroad.