Seoul’s Gangnam Takes the Lead in Seizing Virtual Assets from Tax Delinquents

• Gangnam District pioneers virtual asset seizures for tax evasion, targeting 2,000 delinquents owing 20.9B won.
• Rising cyber fraud affects older adults, with cases increasing from 2,796 in 2019 to 11,435 last year.
• Seoul’s city government urges caution against fraud, advising checks on multilevel marketing company registrations.

Seoul’s Gangnam District is set to lead the South Korean capital in tackling tax evasion through the seizure of virtual assets. This initiative, spearheaded by Gangnam-gu’s district mayor Cho Seong-myeong, marks the district as the first in Seoul to employ such measures against tax delinquents. 

The campaign, beginning this month and extending through October, aims to identify and seize digital assets, including Bitcoin, from individuals who have evaded tax obligations. Gangnam-gu has targeted nearly 2,000 tax delinquents, whose unpaid taxes amount to approximately 20.9 billion won. The district plans to conduct a thorough examination of virtual asset holdings by cross-referencing data from major exchanges like Upbit, Bithumb, and Korbit with records of tax evaders. This approach is intended to ensure that tax delinquents are held accountable by locating their digital assets and enforcing financial penalties.

In addition to the crackdown on tax evasion, there is an urgent need to address the rising concerns about virtual asset-related fraud. Recently, special police officers from the Seoul Metropolitan Government highlighted a significant increase in crimes targeting older adults and homemakers. These groups are particularly vulnerable due to their limited understanding of digital currencies and online transactions.

Operators of illegal multilevel marketing schemes targeted elderly residents by promising virtual assets as incentives. These swindlers conducted fraudulent presentations and persuaded victims to invest. Once they secured the funds, the perpetrators disappeared, leaving their victims defrauded.

Data from the National Police Agency reveals a dramatic rise in cyber fraud victims aged 60 and older. The number of reported cases has surged from 2,796 in 2019 to 11,435 last year. This sharp increase highlights the urgent need for effective preventative measures and increased public awareness.

To combat this trend, the city government advises individuals to verify whether multilevel marketing companies are properly registered with organizations such as the Fair Trade Commission. The rise in fraudulent schemes camouflaged as legitimate businesses, such as advertising or internet shopping platforms, further complicates the situation. Therefore, it is crucial for individuals to exercise heightened caution when dealing with virtual asset investments.

The Seoul city government, represented by Kwon Sun-ki, head of the city’s police unit, has pledged to take stringent actions to protect older adults from financial scams disguised as virtual asset investments. The focus will be on minimizing damage and ensuring that those involved in fraudulent activities are held accountable.