The Korean National Tax Service (NTS) revealed that it has successfully recovered $23 million (33.9 billion won) in overdue taxes from wealthy individuals hiding money overseas. The announcement was also framed as a demonstration of the extent of its reach, which leveraged its international ties and cooperation. The agency has also unveiled a plan to go after cryptocurrency investors using artificial intelligence (AI) as part of a new data-sharing agreement that provides the NTS with information from hundreds of jurisdictions worldwide. South Korea goes after $23 million in evaded taxes The Korean National Tax Service (NTS) announced that since July 2025, and through its collaboration with tax authorities in three different countries, it has collected 33.9 billion won (approximately $23 million) from five major tax evaders. Tracking individuals who hid money abroad used to be very difficult, but now the NTS exchanges information with 163 jurisdictions worldwide and uses automatic data exchange with 119 countries to find accounts. In a recent case , a professional sports player in Korea left the country for an overseas team without paying taxes. The NTS identified the player’s hidden assets through international information-sharing. The athlete eventually paid the full amount through a local representative. In another instance, a foreign business operator left Korea during a tax audit. The NTS traced their financial accounts and luxury vehicle to a third country and requested the government’s assistance in seizing the assets. The individual paid their taxes to avoid losing the assets. The NTS even entered an overseas bankruptcy court in Indonesia to claim money from a developer who owed billions of won. What is the new crypto tracking system? A public bid is currently open for a “Virtual Asset Integrated Analysis System” that will enable the NTS to use Artificial Intelligence (AI) and machine learning to analyze transaction patterns. If the AI detects unusual trading activity that appears to be tax evasion, it will flag the account for an audit. The project is worth 3 billion won (approximately $2.02 million). According to the official bidding documents, the system will be built between April and November 2026, with a pilot launch scheduled for November 2026. By 2027, the NTS will also automatically receive crypto transaction data from 56 countries under a new global reporting framework. Attorney Sinyoung Choi of Cha & Kwon Law Offices warned that this system will remove the “anonymity” of crypto. She also stated that the burden of proof is on the taxpayer. If the AI identifies an unreported transaction, it could result in penalties. However, Cryptopolitan recently reported that the opposition People Power Party (PPP) met with the heads of the five major Korean exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, to discuss canceling the tax. PPP Floor Leader Song Eon-seok argues that because the government abolished the Financial Investment Income Tax (FII Tax) on stocks, it is unfair to tax crypto investors. He claims that taxing crypto but not stocks is a “double taxation problem.” If you're reading this, you’re already ahead. Stay there with our newsletter .
