South Korean City To Seize Crypto From People Who Don’t Pay Their Water Bills

What Happened

“Water bills are an essential revenue source that is directly linked to the quality of our residents’ lives. We will strive to launch this new cryptoasset seizure system, the first of its kind in the country. It will help us boost fiscal soundness and improve our management systems.”

The province said that “thorough investigations” into “various hidden assets,” including crypto holdings, have already yielded results.

Market Context

The South Korean city of Incheon says it will start confiscating crypto from residents who fail to pay their water bills.

The broadcaster Gyeongin Bangsong reported that Incheon Metropolitan City’s Waterworks Headquarters will run an initial one-month pilot for its program, which will be the first of its kind in the country.

Why It Matters

Water Bills: Crypto Confiscation Pilot Begins

The city will run a “special collection period for overdue water bills” from November 1. During this time, it will match data on unpaid bills with data from domestic crypto exchanges such as Upbit and Bithumb.

Details

If authorities find that any of the residents with unpaid bills have crypto holdings, they will send official warnings.

If residents fail to respond to these warnings, the city will then confiscate coins and move to liquidate them.

The city said it will initially focus on individuals who have amassed unpaid water bills of over 500,000 won ($360).

These individuals represent 34% of the city’s unpaid tax bill total. They owe Incheon an estimated combined total of 813 million won ($580,260), a city official said.

An Incheon city official said that people who are having difficulty paying their bills for financial reasons can apply for a deferral of payment.

They can also choose to pay in instalments, the official added. Jang Byung-hyun, the head of the Incheon City Waterworks Headquarters, said:

North Gyeongsang Crackdown

Elsewhere in the country, the newspaper Hankook Ilbo reported that North Gyeongsang Province will begin its own “special collection” period in November and December.

North Gyeongsang is also hoping to seize crypto and other intangible assets during this period.

Province officials said that in the first half of this year, tax agents “seized 10.2 billion won ($7.3 million) worth of assets and collected 4.9 billion won ($3.5 million) in unpaid taxes.”

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