As of August, the arrears amount increased to 2.1 trillion won… Special measures announced, including the establishment of a customs arrears management team. The Korea Customs Service announced on the 18th that it would operate a ‘Customs Arrears Special Clearing Period’ until December 12th. The focus will be on thoroughly clearing long-term arrears that are difficult to manage and high-value or new arrears that require intensive management.
The Korea Customs Service unveiled these ‘Special Measures for Customs Arrears Clearing’ to proactively respond to the continuously increasing customs arrears. According to the Customs Service, the arrear amount, which was 1.578 trillion won in 2021, rose significantly to 2.078 trillion won last year, and stood at 2.115 trillion won as of the end of last month.
During the special clearing period, the Customs Service plans to track concealed assets intensively, employing administrative sanctions such as interviews with defaulters, home searches, seizures, and sales. Additionally, various incentives like installment payments, deferred enforcement, and non-application for confinement will be offered to defaulters willing to pay, to encourage maximum payment.
They also plan to establish a ‘Customs Arrears Management Team’ for the first comprehensive investigation of arrears. The team will verify defaulters’ actual residence, living standards, income, and assets to determine hidden assets and intentional defaults. They will conduct face-to-face meetings to ascertain payment willingness and plans, collecting information to reclassify defaulters and establish a tailored management system.
In the fourth quarter, a pilot program targeting 100 high-value defaulters will be conducted, followed by a full-scale investigation starting in March next year. Based on the investigation results, defaulter types will be classified for tailored management, and a ‘Defaulter Profile Database (DB)’ will be established to lay the foundation for systematic arrears management.
The Customs Service also plans to strengthen the tracking of concealed assets by utilizing new technologies such as big data and artificial intelligence (AI). They are also developing analysis and collection strategies for virtual assets, a new type of asset.
Efforts to trace high-value defaulters who have fled abroad or conceal assets overseas will be intensified by actively utilizing customs officers dispatched to major countries and domestic and international logistics and personnel movement management functions.
Customs Commissioner Lee Myung-koo said, “We are operating a reward system for reporting on intentionally and habitually defaulting defaulters’ concealed assets,” urging the public to actively report these assets.