Top Tax Delinquent 'King of Ships' Kwon Hyuk to Pay Entire 393.8 Billion Won Owed... 100 Billion Already Paid in Cash

NTS Announces Results of High-Value Tax Delinquency Special Response TF Operations

'King of Ships' Offers Five Overseas Vessels as Collateral for Balance of Tax Arrears

Kwanghyun Lim: "This Amount Paid in Unpaid Taxes Is Unprecedented in NTS History"

Kwon Hyuk, Chairman of Sidogroup, who owed nearly 400 billion won in unpaid taxes, has agreed to pay the entire amount. He has already paid 100 billion won in cash, submitted a payment plan for the remaining arrears, and offered ships as collateral. Thanks to the efforts of the National Tax Service’s “High-Value Tax Delinquency Special Response Task Force (TF)”, the 100 billion won paid by Chairman Kwon is the largest amount of delinquent tax collected in National Tax Service history.

On October 7, Kwanghyun Lim, Commissioner of the National Tax Service, presented the operational results of the High-Value Tax Delinquency Special Response TF at the Government Sejong Complex.

Kwanghyun Lim, Commissioner of the National Tax Service, is announcing the performance of the 'Special Task Force for High-Value Delinquent Taxpayer Response' at the Government Sejong Complex on the 7th. National Tax Service

Commissioner Lim stated, "Kwon Hyuk, once referred to as the 'king of ships', has pledged to pay off the entire 393.8 billion won in outstanding taxes for the first time in 15 years. He has already paid 100 billion won in cash up front, and to ensure the remaining amount is paid as soon as possible, he has provided overseas ships as collateral. Collecting such a large sum of unpaid tax is unprecedented in the history of the National Tax Service."

Previously, in 2011, the National Tax Service imposed comprehensive income tax and other taxes on Chairman Kwon. However, in March 2012, Kwon filed a lawsuit against the decision. At that time, Kwon argued that he was not a resident of Korea and therefore not liable for Korean taxes, but the Supreme Court ultimately rejected his claim in 2024. Despite this, Kwon did not pay the taxes owed.

In response, the National Tax Service launched an intensive investigation into Kwon's overseas hidden assets through the High-Value Tax Delinquency Special Response TF, which was established early this year. Ryu Chungsun, Director General for International Taxation at the National Tax Service, explained, "Since Chairman Kwon had no domestic assets, we focused on tracing his assets abroad. To do this, we signed practical agreements for cooperation in tax collection and information exchange with countries such as Liberia. Kwon likely felt pressure from the National Tax Service’s efforts in collecting overseas asset data."

Chairman Kwon plans to pay the full 393.8 billion won in personal tax arrears. He has already paid 100 billion won in cash. For the remaining balance, Kwon has submitted a payment plan and provided ships as collateral, and an evaluation of the collateral’s adequacy is currently underway. The collateral provided by Kwon consists of five ships based in Liberia and Panama. The National Tax Service estimates that the value of the collateral will exceed the remaining arrears of 293.8 billion won.

In June this year, Kwanghyun Lim, Commissioner of the National Tax Service (left), and James Dover Jalla, Commissioner of the Liberia Revenue Authority, signed the 'Mutual Agreement on Exchange of Collection Cooperation Information.' National Tax Service

Since its establishment, the High-Value Tax Delinquency Special Response TF has mobilized all efforts to trace and collect delinquent taxpayers’ assets concealed overseas. To enhance access to information in regions with a high risk of asset concealment, the TF proactively expanded its global information cooperation network. Delegations were dispatched to key countries for direct communication with their heads of tax authorities, and urgent information meetings were held to underscore the importance of each case. This year, agreements for tax collection cooperation were reached with Hungary, Belgium, the United Kingdom, Liberia, and New Zealand, and practical information exchange agreements were signed with countries such as Liberia.

To institutionalize the achievements of the Special Response TF, the National Tax Service is planning to establish special investigation teams—linking tax audits and arrears tracking—within the Investigation Bureau of the Seoul Regional Office (Seoulcheon 4th Bureau) and, for the first time, in the irregular investigation departments of all regional offices. These teams will conduct investigations into major tax evaders suspected of evading tax collection measures and will carry out additional irregular audits on individuals and corporations suspected of tax evasion through fund outflows. Furthermore, to staff these special teams with top talent, the National Tax Service plans to assign employees with outstanding expertise in irregular tax audits, owner property investigations, legal reviews of seized assets, and the collection and use of offshore information during November and December.

Commissioner Lim further stated, "Going forward, the National Tax Service will continue to do everything possible to achieve tax justice, relentlessly tracing and collecting tax-delinquent assets no matter where in the world they are hidden. In addition, we positively note Chairman Kwon’s commitment to payment and pledge of collateral, and we hope this case will have a positive influence, encouraging other tax delinquents to pay voluntarily before enforcement action becomes necessary."

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