AI Takes the Lead in Tax Consulting and Evasion Detection... National Tax Service Ushers in 'K-AI Tax Administration' Era

Development of "Delinquency Management Support" AI Service
Achievements in Consulting with Generative AI Chatbots
AI Applications Expand Across All Areas: Taxpayer Convenience, Tax Evasion Response, and Work Efficiency

The National Tax Service is undergoing a comprehensive transformation of its tax administration, which closely intersects with citizens' daily lives, by adopting an artificial intelligence (AI)-based approach and driving innovation in experiential services. Building on the achievements of its existing AI consultations and generative chatbot functions, the agency is also working to introduce "AI e-filing" that enables tax procedures to be handled remotely without visiting a tax office, as well as the "AI Tax Consultant" for personalized advice.

The National Tax Service is developing an AI service to assist the work of the National Tax and Non-tax Revenue Delinquency Management Division. Approximately 10,000 temporary staff in the delinquency management division will be able to immediately access guidance and manuals through a chatbot at field sites. By providing tablets to telephone and in-person field inspectors, they can check response cases by type of delinquency, points of caution, welfare linkage procedures, and more. To achieve this, the existing generative AI chatbot has been trained on work guidelines, counseling cases, and Q&A materials. The AI work support service is scheduled to launch on August 10, 2026.

The Asia Business Daily DB

The National Tax Service has already shown accomplishments in the field of AI-based consulting. It was the first government institution to introduce AI-powered national tax consultations during the 2024 comprehensive income tax filing period, and this year advanced its scenario-based chatbot by leveraging a generative AI foundation. After initial pilot applications for value added tax and year-end tax settlement in January 2026, the service was expanded in May 2026 to the fields of comprehensive income tax and Earned Income Tax Credit. As a result, a total of about 180,000 people used the AI chatbot during the peak filing periods in January and May this year, with over 350,000 consultations processed. It also responded accurately to narrative-form taxpayer inquiries, resulting in an average of 1.9 inquiries per person: a 26% decrease from the previous year's 2.6, attributed to the enhanced language understanding capability that remembers the context of conversations and better identifies user intent.

Starting with filing and consultation services, the National Tax Service plans to gradually broaden the scope of AI applications to include fair taxation and tax administration efficiency, with the aim of establishing a "public sector AI leading model." An official from the National Tax Service stated, "We are equipped to utilize AI, thanks to world-class electronic tax administration infrastructure and big data," adding, "Given the nature of tax administration work, the introduction of AI will deliver significant effects."

The AI transformation encompasses taxpayer services, fair taxation, and all aspects of national tax administration. By the end of this year, the National Tax Service plans to implement "Hometax AI Search" and "AI Phone Consultation" services, followed by the development of "AI e-filing" and the "AI Tax Consultant" from 2027 onward.

Kwanghyun Lim, Commissioner of the National Tax Service.

AI technologies will also be actively applied to tax evasion response. By the end of this year, the National Tax Service will leverage accumulated past case data and expertise to design the "AI Tax Evasion Detection System," which integrates big data and AI algorithms. In the future, tools such as the "Tax Evasion Pattern Discovery Assistant," the "High-Risk Evasion Suspect Extraction Assistant," and the "Investigation Data Analysis Assistant" will also be developed. The agency is preparing a personal information protection manual and AI operation policy to ensure reliable AI use. In addition, a pilot "AI Work Support" service aimed at reducing simple and repetitive tasks for staff will be launched by year-end, and efforts will be made to train internal experts in collaboration with professional AI organizations.

Kwanghyun Lim, Commissioner of the National Tax Service, commented, "The comprehensive AI transformation in national tax administration aims for citizens to experience the very best in taxpayer services and realize tax justice," adding, "We will establish a safe and trustworthy AI system and usher in the era of 'K-AI Tax Administration' that attracts global attention."

This content was produced with the assistance of AI translation services.