Tax agency collects $23 mil. unpaid taxes by uncovering hidden overseas assets

Han Chang-mok, director for National Tax Service's international taxation division, gives a briefing on efforts to track hidden overseas assets of delinquent taxpayers in the agency's press room in Sejong City, Monday. Yonhap

A foreign athlete who earned a high salary in Korea’s professional sports league left the country for an overseas team without filing taxes, only to be tracked down and forced to pay up overdue income tax, according to the National Tax Service (NTS), Monday.

The agency identified the player’s assets through information-sharing with foreign tax authorities and recovered the unpaid taxes through cross-border collection. The athlete ultimately settled the arrears through a local representative.

The case underscores a broader push by the tax agency, which has recovered a total of 33.9 billion won ($23 million) in delinquent taxes over the past nine months through cooperation with tax authorities in three countries.

The amount, recovered since NTS Commissioner Lim Kwang-hyun took office in July 2025, accounts for the bulk of the agency's total cross-border collections of 37.2 billion won since 2015.

In another instance, a foreign business operator left Korea during an ongoing tax audit, anticipating a hefty bill. The NTS traced its financial accounts in a third country along with high-value assets, including a luxury vehicle, and requested collection assistance from the relevant jurisdiction.

Faced with mounting pressure, the individual eventually paid the outstanding taxes.

Beyond cases already resolved, dozens of others are still in the pipeline, signaling a widening crackdown.

In a first for the agency, the NTS has also pushed into an overseas bankruptcy proceeding to stake its claim. The case centers on a property developer who built up tax arrears worth tens of billions of won.

After learning the individual’s Indonesian entity had entered bankruptcy, the NTS moved quickly — appointing local counsel, joining court proceedings and securing creditor status. It is now seeking a share of the remaining assets.

Officials said such recoveries are increasingly driven by deeper international coordination. The NTS currently exchanges information with tax authorities in 163 jurisdictions to track down assets hidden abroad. Because those assets lie beyond Korea’s direct reach, local authorities carry out seizures and collections on its behalf.

And the agency’s net is set to widen further. Starting next year, it will begin receiving data on virtual asset transactions from 56 countries under a new crypto asset reporting framework. From 2030, it will also exchange information on overseas real estate holdings and transactions.