According to local media, the South Korean government has seized about $184 million worth of cryptocurrency in two years for tax delinquency. Authorities in Seoul began confiscating virtual assets from people accused of tax evasion in 2021.
About 260 billion won of crypto seized in South Korea for tax evasion
Online editions of Yonhap News and Maekyung revealed Thursday that the amount of crypto assets seized from South Koreans accused of tax evasion amounted to almost 260 billion Korean won (nearly $184 million at current exchange rates).
The report cites official figures released by the Ministry of Economy and Finance, the Ministry of Security Administration, the National Tax Administration, and authorities in 17 cities and provinces.
Of the total of over 259.7 billion won, more than 176 billion won in assets were seized for nonpayment of national taxes and more than 84 billion won in crypto was seized as a result of local tax delinquencies, the news outlet detailed.
Nearly a third of that cryptocurrency was seized in the capital Seoul (17.8 billion won), Incheon City (close to 5.5 billion won), and the rest in Gyeonggi Province (over 53 billion won). The South Korean government authorized the seizure of virtual assets in late 2020.
Since then, the highest amount of crypto seized from a single individual was 12.5 billion won ($8.8 million). The Seoul resident owed 1.43 billion won in delinquent local taxes and held 20 digital currencies, including 3.2 billion won in
BTC
and 1.9 billion won in
XRP
The taxpayer elected to cover its obligations and sought to retain its crypto investments. When Korean tax authorities seize a person’s exchange account or its assets, they will sell the coins at the current exchange rate if the taxes are not paid when due.
Statistics on seized crypto were released in early August after the NTS vowed to take tough action against tax evasion through virtual assets and platforms. Earlier this year, South Korea delayed a 20% tax on crypto-related gains until 2025; the tax, which applies to capital gains exceeding 2.5 million won, was previously set to take effect in January 2023.
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