Gyeonggi Province Collects KRW 190 Million by Seizing Lease Deposit Refund Claims from Delinquent Non-Tax Revenue Payers

Gyeonggi Province collected approximately KRW 190 million by tracing claims to vehicle security deposit refunds held by delinquent payers of non-tax revenue.

Gyeonggi Province announced on November 9 that it had collected KRW 188.26 million from 63 delinquent payers after tracing their claims to refunds of lease and rental car deposits using data on mandatory auto insurance enrollment from the Ministry of Land, Infrastructure and Transport.

From May through October, Gyeonggi Province had conducted a comprehensive investigation of 103,486 delinquent payers who owed at least KRW 500,000 to the provincial government or at least KRW 1 million to a city or county. Their total arrears amounted to KRW 1.035 trillion.

Investigations into the assets of delinquent non-tax revenue payers are hampered by restrictions on access to financial transaction information. Existing asset inquiries, which focus on vehicle ownership, have also been limited in their ability to determine whether delinquent payers use leased or rental cars.

To address these limitations, Gyeonggi Province and its cities and counties cross-checked mandatory auto insurance enrollment data against non-tax revenue arrears records. After confirming that delinquent payers had used leased or rental cars, they sought to collect the overdue amounts by seizing their claims to deposit refunds where the contracts entitled them to a refund.

Gyeonggi Provincial Government

The investigation found that 400 delinquent payers had used leased or rental cars, with total arrears of KRW 4.67408 billion. Gyeonggi Province and its cities and counties seized deposit refund claims belonging to 267 of them and collected KRW 188.26 million from 63. The remaining cases involve payers who are making installment payments or whose assets are insufficient to make seizure worthwhile. The province plans to pursue collection actions if further investigations identify other assets.

Gyeonggi Province is broadening the scope of asset investigations by using data held by relevant institutions, as it did in this investigation. It is also pursuing institutional reforms to secure the financial transaction information needed to investigate the assets of delinquent non-tax revenue payers.

Article 4, Paragraph 1, Subparagraph 2 of the current Act on Real Name Financial Transactions and Confidentiality stipulates that financial transaction information may be provided when needed to investigate the assets of delinquent taxpayers. On December 10, 2025, the province proposed amending the Act on Real Name Financial Transactions to include investigations into the assets of delinquent non-tax revenue payers within the scope of information that may be provided.

Noh Seungho, head of the Tax Justice Division at Gyeonggi Provincial Government, said, "By using mandatory auto insurance enrollment data, we identified claims to deposit refunds that were difficult to find through existing asset inquiries and collected overdue amounts. We will continue to develop collection methods suited to the various ways delinquent payers hold assets, while also making every effort to amend relevant laws so we can secure the financial transaction information needed to investigate the assets of delinquent non-tax revenue payers."

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