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Korea pursues international tax evaders with cooperation from foreign authorities

Published: 28 Apr. 2026, 10:43

An official from the National Tax Service announces the results of efforts to track and recover unpaid taxes from overseas assets at the Government Complex Sejong on April 27. [NEWS1]

Korea's tax authorities tracked down a foreign professional athlete who fled overseas without paying their taxes as part of the government's harsher crackdown on tax evaders, particularly those seeking haven abroad.

The athlete earned a high salary in Korea before leaving the country without paying taxes after being transferred overseas. The unpaid assets were later identified by exchanging information with foreign tax authorities and ultimately led to full payment.

The move underscores a broader crackdown on offshore tax evasion, as authorities fortify their networks with foreign tax agencies to locate hidden assets and enforce collection. Since July last year, the National Tax Service (NTS) has recovered 33.9 billion won ($23 million) in unpaid taxes across five cases through cooperation with three countries.

“We will ensure that tax delinquents cannot find refuge anywhere in the world,” the NTS stated.

Foreign tax evaders often endeavor quickly to settle once overseas assets are uncovered, according to the tax agency.

One wealthy individual attempted to avoid taxes by leaving Korea during an audit, but eventually paid their overdue balance after a bank account in a third country and an expensive vehicle were found. Another foreign national voluntarily paid most of the outstanding taxes after being notified of joint collection measures following the discovery of overseas real estate and stock holdings.

In contrast, some Korean nationals attempted to delay payment by using assets under borrowed names. Authorities responded by identifying overseas accounts and working with foreign tax agencies to directly collect deposits or enforce payment from accounts held by permanent residents abroad.

The National Tax Service headquarters in Sejong [NEWS1]

The NTS maintains information-sharing systems with 163 countries to track overseas assets and conducts collection cooperation by having foreign tax authorities carry out seizures and collections on Korea’s behalf.

The scope of asset tracking is set to expand further. Beginning next year, Korea will share virtual asset transaction data with 56 countries. From 2030, authorities plan to secure information on overseas real estate ownership and transactions.

The NTS has also signed agreements with countries such as Indonesia and Australia to strengthen collection cooperation and is expanding enforcement tools, including direct participation in foreign bankruptcy proceedings.

In one case, the agency joined as a creditor in bankruptcy proceedings involving a delinquent taxpayer operating a business overseas and is currently participating in asset distribution.

With dozens of international cooperation cases underway, the NTS expects to recover hundreds of billions of won in additional unpaid taxes.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG [[email protected]]