[Sejong = E-Daily Reporter Kim Mi-Young ] “It’s said that the heads of the tax authorities in Panama and Liberia were so startled when they heard that the Commissioner of the Korean National Tax Service had sent a personal letter that they wondered what on earth was going on. The Liberian commissioner even came to our staff’s quarters after work and asked, ‘What on earth brought you all the way out here?’”

The process by which the National Tax Service managed to collect the entire amount of back taxes—approximately 400 billion won—from Kwon Hyuk, chairman of the Sido Group, was nothing short of a “rollercoaster ride.” Given that this was a high-value tax delinquency case that had been pending for 15 years, even veteran NTS officials admitted, “To be honest, we weren’t confident we could pull it off.” We met with Song Yoon-jung, the Offshore Information Officer for the NTS’s “Special Task Force on High-Value Tax Delinquencies,” to hear the story of how they tracked down Chairman Kwon Hyuk.

In a recent interview with Edaily at the Government Complex Sejong, Officer Song said, “While I couldn’t guarantee when the full amount would be recovered, this was an effort undertaken in the name of tax justice,” adding, “I viewed it as a meaningful endeavor, so I began by assembling a team of employees who were committed to the cause.”

The National Tax Service’s pursuit of Chairman Kwon gained new momentum last December when President Lee Jae-myung directed a strong response to large-scale tax arrears during a briefing on the agency’s operations. Although he was caught in a 2011 investigation into offshore tax evasion, nearly 15 years were wasted on litigation alone; the Supreme Court’s ruling in 2024 in favor of the National Tax Service served as a decisive catalyst. Earlier this year, the “Special Task Force for High-Value Tax Delinquencies,” which included the Overseas Information and Funds Tracking Team, was launched, deploying approximately 15 personnel, including Director Song.

The biggest headache was how to seize Chairman Kwon’s overseas assets, given his consistent strategy of “holding out.” It was explained that Chairman Kwon kept no assets in Korea and operated his shipping business overseas through a multi-tiered ownership structure, making it extremely difficult to prove who the actual owners of the assets were and to seize them. Officer Song said, “Nevertheless, Commissioner Im Gwang-hyun told us, ‘As Commissioner, I will provide every possible support, so go and recover all the delinquent taxes,’ which really boosted our morale,” adding, “We actually received full support in terms of personnel, budget, and overseas business trips.”

The task force decided to seek a breakthrough through information exchange with foreign countries. Although they had previously requested information from tax authorities in countries where Chairman Kwon’s assets were suspected to be hidden, they were often met with silence. Even though tax administration cooperation agreements mandate the exchange of information, there are no set deadlines for responses, and there are no adequate sanctions for delays or noncompliance, leaving the agency with no choice but to rely on the other country’s willingness to cooperate. Consequently, TF staff members flew simultaneously to countries in Asia, Africa, and Europe, carrying a “personal letter” from then-Commissioner Im Gwang-hyun requesting cooperation. The strategy paid off.

Officer Song stated, “It is highly unusual for National Tax Service employees to travel with a personal letter from the Commissioner, as if they were diplomatic envoys; the Commissioner’s ‘personal letter diplomacy’ and ‘letter-based tax administration diplomacy’ truly shone.” He added, “Working-level meetings that would have been difficult to arrange without the personal letters were successfully organized, and we received meaningful cooperation from countries such as Panama and Liberia.” He went on to praise the staff, noting, “The employees assigned to Liberia did not spare any effort, enduring a 59-hour round-trip flight and receiving vaccinations against malaria and yellow fever.”

They also found a legal lead by “unearthing” a Supreme Court precedent from the 1980s related to ship seizures. Based on this precedent, the task force sought the latest legal advice and commissioned research. Officer Song said, “Ultimately, the resolution was expedited when Chairman Kwon decided to offer the vessel as collateral,” adding, “Chairman Kwon has previously expressed a desire to contribute to society, such as by building a hospital, and I believe he has decided to realize that goal through normal economic activities.”

The National Tax Service plans to continue tracking high-value tax delinquents who have hidden assets overseas by operating special tax audit and delinquency investigation teams at regional offices nationwide. Officer Song emphasized, “The efforts of our staff, which have accumulated layer by layer over the past 15 years since the Offshore Tax Evasion Division was first established in 2011, have finally borne fruit,” adding, “I hope the public comes to recognize that the National Tax Service’s offshore intelligence staff—who have worked quietly and diligently without drawing attention to themselves, much like National Intelligence Service agents—are accomplishing such remarkable work, and that they receive the applause they deserve for their hard work.”