NATIONAL TAX COLLECTION ACT Wholly Amended by Act No. 2680, Dec. 21, 1974 Amended by Act No. 3661, Dec. 19, 1983 Act No. 3912, Dec. 31, 1986 Act No. 4561, Jun. 11, 1993 Act No. 4673, Dec. 31, 1993 Act No. 4811, Dec. 22, 1994 Act No. 4981, Dec. 6, 1995 Act No. 5190, Dec. 30, 1996 Act No. 5371, Aug. 22, 1997 Act No. 5454, Dec. 13, 1997 Act No. 6053, Dec. 28, 1999 Act No. 6073, Dec. 31, 1999 Act No. 6805, Dec. 26, 2002 Act No. 7004, Dec. 30, 2003 Act No. 7116, Jan. 29, 2004 Act No. 7428, Mar. 31, 2005 Act No. 7931, Apr. 28, 2006 Act No. 8055, Oct. 27, 2006 Act No. 8832, Dec. 31, 2007 Act No. 9265, Dec. 26, 2008

The purpose of this Act is to provide necessary matters concerning the collection of national taxes to ensure the State revenue.

Matters provided for in this Act, for which the Basic Act for National Taxes or other Acts on taxes have special provisions different therefrom, shall be subject to the conditions as prescribed by the said Acts.

(1) For the purpose of this Act, the term “defaulted taxpayer” means a taxpayer who has failed to pay national taxes within the payment period, and the term “delinquent amount” means an amount including national taxes in arrears, additional dues thereof and disposition fee for arrears.(2) The definition of terms as used in this Act, except paragraph (1), shall be subject to the conditions as prescribed by the Basic Act for National Taxes.

The order of collection of national taxes, additional dues and disposition fee for arrears shall be as follows:1. Disposition fee for arrears;2. Additional dues; and3. National taxes.

If a taxpayer (including a person on whom the tax has not yet been imposed; hereafter the same shall apply in this Chapter) falls under any of the following subparagraphs, he shall submit a certificate of tax payment under the conditions as prescribed by the Presidential Decree: <Amended by Act No. 3661, Dec. 19, 1983; Act No. 4673, Dec. 31, 1993; Act No. 5190, Dec. 30, 1996>1. When he receives a payment from the State, local government or government-managed institution as prescribed by the Presidential Decree;2. When a foreigner who is liable to pay national taxes (including those liabilities to collect and pay; hereinafter the same shall apply) departs from the Republic of Korea; and3. When a Korean emigrates or goes overseas for the purpose of staying there over one year.

If the director of the tax office receives a request for the issuance of certificate of tax payment from a taxpayer, he shall promptly issue the pertinent certificate to the taxpayer after confirming the fact.[This Article Wholly Amended by Act No. 5190, Dec. 30, 1996]

(1) Any person intending to lease and use a residential building under Article 2 of the Housing Lease Protection Act or a business center building under Article 2 of the Commercial Building Lease Protection Act may file an application, with the director of tax office having jurisdiction over the location of buildings to be leased, for a perusal of the national taxes unpaid by the lessor before concluding a lease contract for the relevant buildings by obtaining a consent of the lessor. In this case, the director of the competent tax office shall comply with the application for perusal.(2) The national taxes which may be perused by the lessee under paragraph (1) shall be limited to the delinquent national taxes of the lessor, the national taxes whose payment dates arrive as yet after an issuance of tax payment notices or payment notifications, and the unpaid national taxes from among national taxes returned within the date of return on the tax base and tax amount under the respective tax Act.(3) Matters necessary for the application for perusal under paragraph (1) shall be prescribed by the Presidential Decree.[This Article Newly Inserted by Act No. 6805, Dec. 26, 2002]

(1) If a taxpayer fails to pay national taxes without any justifiable reason as prescribed by the Presidential Decree, the director of the tax office may request the competent authorities for business subject to permission, authorization, license, registration, or renewal thereof (hereinafter referred to as “permission, etc.”) not to issue such permission, etc. to the taxpayer concerned.(2) If a person who operates an enterprise with permission, etc. under paragraph (1) fails to pay national taxes three or more times and the delinquent amount is five million won or more, the director of the tax office may request the competent authorities to suspend the enterprise or cancel the pertinent permission, etc. except for the cases as prescribed by the Presidential Decree. <Amended by Act No. 6053, Dec. 28, 1999; Act No. 9265, Dec. 26, 2008>(3) If the director of the tax office collects national taxes after a request under paragraph (1) or (2) is made, he shall withdraw the said request without delay.(4) If the director of the tax office makes the request under paragraph (1) or (2), the competent authorities shall comply with such request, unless there are any justifiable reasons to the contrary.

(1) If a credit information business operator or a credit information collection agency under Article 2 of the Use and Protection of Credit Information Act or other persons as prescribed by the Presidential Decree request materials on personal data, amount in arrears, or amount of disposal of deficit (hereinafter referred to as “materials on arrearage or disposal of deficit”) related to a defaulter or person in disposal of deficit who falls under any of the following subparagraphs and their request is necessary for the collection of national tax or public interest, the director of the tax office may furnish such materials: Provided, That in cases where a request for objection, request for examination, or request for judgment pursuant to the Basic Act for National Taxes and the administrative litigation are pending in relation to the national taxes in arrears or in other cases as prescribed by the Presidential Decree, the same shall not apply: <Amended by Act No. 8832, Dec. 31, 2007>1. A person who has been in arrears with the payment for one year and the amount in arrears is larger than that as prescribed by the Presidential Decree;2. A person who has been in arrears with the payment three or more times in one year and the amount in arrears is larger than that as prescribed by the Presidential Decree; and3. A person who has the tax amount that was written off as deficits in excess of the amount as prescribed by the Presidential Decree.(2) The matters necessary for the procedure of furnishing materials on arrearage or disposal of deficit, etc. under the provisions of paragraph (1) shall be prescribed by the Presidential Decree.(3) A person who is furnished with materials on arrearage or disposal of deficit under the provisions of paragraph (1) shall not disclose them or use them out of the designated purposes.[This Article Newly Inserted by Act No. 5190, Dec. 30, 1996]

The director of the tax office (including the Commissioner of the Regional Tax Service and the Commissioner of the National Tax Service) may make the payment record, etc. on interest income or dividend income and other information on financial transactions, which are provided under Article 164 of the Income Tax Act and Article 120 of the Corporation Tax Act, available for the disposition on default including inquiry into the defaulted taxpayer’ property, notwithstanding Article 4 (4) of the Act on Real Name Financial Transactions and Guarantee of Secrecy. <Amended by Act No. 8832, Dec. 31, 2007>[This Article Newly Inserted by Act No. 7116, Jan. 29, 2004]

(1) The director of the tax office may entrust the head of Si (in case of the Special Metropolitan City and other Metropolitan Cities, head of Gu/Gun; hereinafter the same shall apply) or head of Gun with the collection of national taxes within his jurisdictional area under the conditions as prescribed by the Presidential Decree. In this case, the head of Si/Gun shall collect such national taxes and pay them to the national treasury. <Amended by Act No. 3661, Dec. 19, 1983; Act No. 5454, Dec. 13, 1997>(2) The Government shall, in such manner as prescribed by the Presidential Decree, deliver grant money as the expense for collection under paragraph (1) to the head of Si/Gun.

(1) If the director of the tax office or the head of Si/Gun intends to collect national taxes, he shall issue to the taxpayer a notice specifying the taxable year, tax item, tax amount, basis of calculation, payment period and payment place of the said national taxes. <Amended by Act No. 3661, Dec. 19, 1983>(2) When a taxpayer has paid only the delinquent national tax and additional dues thereof, if the director of the tax office intends to collect the disposition fee for arrears, he shall issue a notice to the taxpayer in such manner as prescribed by the Presidential Decree.

The notice of tax payment and the notification of tax amount shall be issued at the time as specified in the following subparagraphs:1. In case where the tax payment period is fixed, 5 days before the starting date of the period for the notice of tax payment, and 15 days before the starting date of the period for the notification of tax amount;2. In case where the tax payment period is not fixed, immediately after deciding the collection; and3. In case where the tax collection is deferred for a certain period of time according to the Acts on taxes, the day following the expiry date of the period.

The director of the tax office may designate the payment period (excluding the cases prescribed by the Acts on taxes) of national taxes (including the disposition fee for arrears) within 30 days from the date of the notice of tax payment, payment, or paying-in.[This Article Wholly Amended by Act No. 5190, Dec. 30, 1996]

If the director of the tax office intends to collect national taxes, additional dues, or a disposition fee for arrears of a certain taxpayer from the taxpayer with the secondary liability (including the tax guarantor; hereinafter the same shall apply), he shall notify the latter with a notice of payment stating the taxable year, tax item, tax amount, basis of calculation, payment period, payment place of national taxes, additional dues or disposition fee for arrears to be collected, the amount to be collected from the taxpayer with the secondary liability, and the basis of its calculation and other necessary matters. In this case, he shall notify the taxpayer of the said purport. <Amended by Act No. 3661, Dec. 19, 1983; Act No. 6805, Dec. 26, 2002>

(1) If the director of the tax office intends to collect taxpayer’s national taxes, additional dues, or disposition fee for arrears from the mortgagee under Article 42 of the Basic Act for National Taxes, he shall notify the mortgagee of the tax payment by applying mutatis mutandis the provisions of Article 12. In this case, he shall notify it to the director of the tax office which has jurisdiction over the domicile or temporary domicile of the mortgagee and to the taxpayer.(2) In case where an obligation mortgaged by the method of transfer of the pertinent property is extinguished due to reasons other than default of obligation or other performance(including the case where a contract concluded on the basis of repurchase of mortgaged property, reservation of resale or other method similar thereto is invalidated due to reasons other than lapse of time limit or performance of the said contract) after the notice under paragraph (1) is made, the mortgaged property shall be considered still existing.

(1) The director of the tax office may collect the determined national tax from the taxpayer even before the payment period, if the duty falls under any of the following subparagraphs: <Amended by Act No. 6053, Dec. 28, 1999>1. Where the taxpayer is subject to a disposition for arrears due to delinquency of national taxes;2. Where the taxpayer is subject to a disposition for arrears due to delinquency of local taxes or public charges;3. Where the taxpayer is subject to a compulsory execution;4. Where the taxpayer has been subject to a disposition of transaction suspension by the clearing house pursuant to the Bills of Exchange and Promissory Notes Act and the Check Act;5. Where an auction has started;6. Where the juristic person is dissolved;7. Where it is deemed that there is an attempt to evade national taxes; and8. If the taxpayer has neither a domicile or temporary domicile nor a tax manager in Korea.(2) If the director of the tax office collects national taxes before the period of tax payment under paragraph (1), he shall notify the taxpayer of the designated period of payment. In this case, if a notification of the tax payment was already issued, he shall notify the taxpayer of the changed period of payment.

(1) If the director of the tax office deems before the commencement of payment period that it is impossible for a taxpayer to pay national taxes due to any of the following reasons, he may defer a notification of the tax payment or notify the taxpayer of the installment payment of the determined tax amount under the conditions as prescribed by the Presidential Decree: <Amended by Act No. 4811, Dec. 22, 1994; Act No. 4981, Dec. 6, 1995; Act No. 8832, Dec. 31, 2007>1. If a great damage or loss has inflicted on the taxpayer’s properties due to theft or disasters;2. If a conspicuous damage or loss has inflicted on the taxpayer’s business;3. If the taxpayer’s business is in serious crisis;4. If the taxpayer or his dependants have to receive long term medical treatment because of serious injuries or diseases;5. Where a procedure for a mutual agreement is in progress with the competent authorities of a foreign country under a treaty concluded for the prevention of double taxation: Provided, That this case shall be subject to the special case of deferment of collection as provided for in Article 24 (2), (4) and (6) of the Act for the Coordination of International Tax Affairs; and6. If there are similar reasons to those as provided for in subparagraphs 1 through 4.(2) If the taxpayer desires to obtain a deferment of notification or a notification of the installment payment of tax amount under paragraph (1), he may file an application with the director of the tax office under the conditions as prescribed by the Presidential Decree.(3) If the director of the tax office defers a notification of the tax payment or notifies the installment payment of the tax amount, under paragraph (1), he shall give the notice to the applicant under the conditions as prescribed by the Presidential Decree.

(1) The director of the tax office may defer the tax collection, in case where the notice of tax payment can not be served due to obscurity of domicile, temporary domicile, business place, or office (hereinafter referred to as “domicile or business place”).(2) If the director of the tax office deems that it is impossible to ensure the collection of national taxes deferred under paragraph (1), he may cancel the decision of charging such national taxes.(3) If the director of the tax office finds the property or whereabouts of the taxpayer after deferring the tax collection pursuant to paragraph (1), or cancelling the levy of national taxes pursuant to paragraph (2), such director shall immediately take the procedures for imposing or collecting the national taxes.

(1) After notifying or urging the tax payment, if the director of the tax office recognizes that the taxpayer can not pay the national taxes or delinquent amount notified within the time limit for payment for the reason falling under any subparagraphs of Article 15 (1), he may defer the tax collection for a certain period under the conditions as prescribed by the Presidential Decree: Provided, That if a procedure for mutual agreement is in progress with the competent authorities of a foreign country under the treaty concluded for the prevention of double taxation, it shall be subject to the special case, such as deferment of collection, etc., as provided for in Article 24 (3) through (6) of the Act for the Coordination of International Tax Affairs. <Amended by Act No. 4981, Dec. 6, 1995; Act No. 8832, Dec. 31, 2007>(2) The provisions of Article 15 (2) and (3) shall apply mutatis mutandis to cases as provided for in paragraph (1).

If the director of the tax office defers the tax collection under Article 15 or 17, he may request the taxpayer to provide a security for tax payment corresponding to the amount relating to the deferment.

(1) If the director of the tax office has deferred the national tax collection before the time limit for payment notified to the taxpayer under Article 17, he shall not impose the additional dues as provided for in Article 21 until the period of deferment expires. <Amended by Act No. 8832, Dec. 31, 2007>(2) If the director of the tax office has deferred the national tax collection after the time limit for payment notified to the taxpayer under Article 17, he shall not, in collecting the additional dues as provided for in Article 22, add the period of deferment of tax collection to the period for calculating additional dues. <Amended by Act No. 8832, Dec. 31, 2007>(3) The director of the tax office shall not take any disposition for arrears (excluding a request for delivery) with respect to the deferred national taxes or delinquent amount during the period of deferment granted under Article 17.(4) When collection is deferred as provided for in Article 140 of the Debtor Rehabilitation and Bankruptcy Act after a taxpayer has been notified or urged to pay tax, paragraphs (1) and (2) shall apply to the collection of additional dues. <Amended by Act No. 7428, Mar. 31, 2005; Act No. 9265, Dec. 26, 2008>(5) Where the collection of national taxes is deferred because the procedure for mutual agreement with the competent authorities of the foreign country is in progress, the special case on the additional dues as provided for in Article 24 (5) of the Act for the Coordination of International Tax Affairs shall be applicable. <Amended by Act No. 4981, Dec. 6, 1995>[This Article Wholly Amended by Act No. 3661, Dec. 19, 1983]

(1) If a taxpayer who has been granted the deferment of tax collection under Article 15 or 17 falls under any of the following subparagraphs, the director of the tax office may cancel the deferment and collect the deferred national taxes or delinquent amount at a time: <Amended by Act No. 8832, Dec. 31, 2007>1. If he does not pay national taxes and delinquent amount by the designated time limit;2. If he does not comply with the instruction of the director of the tax office concerning the change or preservation of the security;3. If it is deemed that the deferment is no longer needed because of a change in the taxpayer’s property or other situation; and4. If it is deemed that the total amount of the deferred national taxes or delinquent amount is not to be collected up to the deferred time limit because it falls under Article 14 (1) 2 through 8.(2) If the director of the tax office cancels the deferment of tax collection under paragraph (1), he shall notify the taxpayer of such fact.

If the total amount of national tax is not paid on or before the date prescribed for payment of such tax, any additional dues shall be collected at the rate of 3/100 of the defaulted amount of national tax from the date following the date prescribed for payment of such tax: Provided, That this shall not apply to the State and local governments (including the association of local governments). <Amended by Act No. 3661, Dec. 19, 1983; Act No. 7004, Dec. 30, 2003; Act No. 8832, Dec. 31, 2007>

(1) If the defaulted national taxes are not paid, another additional dues (hereafter referred to as “increased additional dues” in this Article) shall be collected at the rate of 12/1,000 of the defaulted national tax amount for each month following the date prescribed for payment of such tax, in addition to the additional dues as provided for in Article 21. In this case, the period in which the increased additional dues are collected may not exceed sixty months. <Amended by Act No. 4673, Dec. 31, 1993; Act No. 8832, Dec. 31, 2007>(2) The provisions of paragraph (1) shall not apply if the delinquent amount of national tax imposed by payment notice or by tax item is less than one million won. <Amended by Act No. 8832, Dec. 31, 2007>(3) The proviso to Article 21 shall apply mutatis mutandis to the case as provided for in paragraph (1).(4) In cases where the collection of delinquent amount is deferred because the procedure for mutual agreement with the competent authorities of the foreign country is in progress, the provisions of paragraph (1) shall not be applied, but the special case on the additional dues as provided for in Article 24 (5) of the Act for the Coordination of International Tax Affairs shall apply. <Newly Inserted by Act No. 4981, Dec. 6, 1995>[This Article Wholly Amended by Act No. 3661, Dec. 19, 1983]

(1) In cases where national taxes are not paid completely by the time limit for payment, the director of the tax office or the head of Si/Gun shall issue a notice of demand for the payment to the taxpayer within ten days after the time limit for tax payment expires: Provided, That this provision shall not be applicable to the collection of national taxes under Article 14, or to the delinquent amount that is less than the amount prescribed by the Presidential Decree. <Amended by Act No. 4811, Dec. 22, 1994; Act No. 8832, Dec. 31, 2007; Act No. 9265, Dec. 26, 2008>(2) The director of the tax office shall issue a peremptory notice to the taxpayer with the secondary liability within ten days, if the delinquent amount has not been paid completely by the time limit for payment: Provided, That this shall not apply in cases where the delinquent amount that the taxpayer with the secondary liability has to pay is less than the amount prescribed by the Presidential Decree. <Amended by Act No. 4811, Dec. 22, 1994; Act No. 8832, Dec. 31, 2007; Act No. 9265, Dec. 26, 2008>(3) When issuing a notice of demand for the payment or a peremptory notice, the time limit for payment shall be less than twenty days from the date of issuance. <Amended by Act No. 9265, Dec. 26, 2008>

(1) Any tax officials shall seize the taxpayer’s property in cases falling under any of the following subparagraphs:1. If the taxpayer does not pay completely national taxes and the additional dues by the designated period after receiving a notice of demand (including a peremptory notice; hereinafter the same shall apply); and2. If the taxpayer fails to pay completely the tax by the designated period after receiving a notice of tax payment before the period of the tax payment under Article 14 (1).(2) If the director of the tax office deems that he cannot collect from a taxpayer national taxes after the determination of national taxes due to a cause falling under any subparagraphs of Article 14 (1), he may seize the taxpayer’s properties to the extent of the estimated amount of national taxes.(3) The director of the tax office shall obtain approval from the director of a regional tax service before seizing the properties under paragraph (2).(4) The director of the tax office shall make a notification to the taxpayer in writing after seizing the properties under paragraph (2).(5) The director of the tax office shall clear without delay the seizure of the properties effected under paragraph (2) in case falling under any of the following subparagraphs: <Amended by Act No. 4673, Dec. 31, 1993; Act No. 8832, Dec. 31, 2007>1. When the taxpayer who received the notification under paragraph (4) requests the clearance of the seizure after providing security for tax payment; and2. When the amount of national taxes to be collected by the seizure is not determined until three months have passed after the date of the seizure.(6) Where any properties seized under paragraph (2) are money, deposits collectible within the period for payment, or securities, the director of the competent tax office may appropriate them to the fixed national taxes when the taxpayer files an application therefor. <Newly Inserted by Act No. 6805, Dec. 26, 2002>[This Article Wholly Amended by Act No. 3661, Dec. 19, 1983]

In case where tax officials conducts inquiry, inspection or search, or seize properties to take the disposition for arrears, they shall carry their identification cards with them to present them to the persons concerned.

(1) If it is necessary for seizing property, the tax officials may search the defaulted taxpayer’s house, vessel, warehouse and other places, and open or make open any closed doors, safes, or equipment possessed by the defaulted taxpayer. This is also applicable to a case where a third person who possesses the defaulted taxpayer’s properties refuses to deliver the properties.(2) The provisions of paragraph (1) shall apply mutatis mutandis to the case of suspecting that the defaulted taxpayer’s properties are hidden in a third person’s house, vessel, warehouse, and other places.(3) Searching as provided for in paragraph (1) or (2), shall be limited within the time from sunrise to sunset: Provided, That when it starts before sunset, it may be continued even after sunset.(4) A place in which a business as prescribed by the Presidential Decree is operated chiefly during night, may be searched after sunset while in operation, notwithstanding the provisions of paragraph (3).(5) If the tax officials find no properties attachable under paragraph (1) or (2), they shall prepare a search report to be signed by them together with signature and seal of the defaulted taxpayer or participants under Article 28.(6) When the tax officials prepare for a search report under paragraph (5), they shall deliver a copy of the report to the delinquent taxpayer searched or any other participants searched.

If the tax officials desire to know the location and quantity of the attachable properties in executing the disposition for arrears, they may inspect files, documents and other items or inquire those persons who fall under any of the following subparagraphs:1. Defaulted taxpayer;2. Person having any transactions with the defaulted taxpayer;3. Person occupying the defaulted taxpayer’s properties;4. Creditor or obligor of the defaulted taxpayer;5. Juristic person of which partner or stockholder is defaulted taxpayer; and6. Partners or stockholders of a juristic person which is the defaulted taxpayer.

(1) When a tax official makes search or inspection under Article 26 or 27, he shall have the person subject to the search or inspection, his family, person living together with him, clerk, or other employee participate in it as a witness.(2) In a case as provided for in paragraph (1), if there is no participant, or nobody responds to the participation, the tax officials shall make police officials, the officials of Seoul Special Metropolitan City, Metropolitan Cities, Si/Gun, or two or more majors participate as witnesses. <Amended by Act No. 3661, Dec. 19 1983; Act No. 5454, Dec. 13, 1997>

The tax officials shall prepare an attachment report in case where they seize the defaulted taxpayer’s properties. In this case, the tax officials shall give a copy of the report to the defaulted taxpayer in case where the seized properties fall under any of the following subparagraphs:1. Movables or securities;2. Claims; and3. Rights of properties other than claims and ownerships (hereinafter referred to as “intangible property rights, etc.”).

Where any defaulted taxpayer performs a legal act for the purpose of property right in order to be exempted from any collection of national taxes, the tax officials may, in executing any disposition on default, request the court to revoke his fraudulent act by applying mutatis mutandis the provisions of Articles 406 and 407 the Civil Act. <Amended by Act No. 8832, Dec. 31, 2007>[This Article Wholly Amended by Act No. 6805, Dec. 26, 2002]

Properties in the following subparagraphs shall be unattachable: <Amended by Act No. 3661, Dec. 19, 1983; Act No. 8832, Dec. 31, 2007>1. Daily necessities for a defaulted taxpayer and his dependants such as clothes, bedding, furniture, and kitchen instruments;2. Food and fuel needed for a defaulted taxpayer and his dependants for three months;3. Seals and stamps needed for a defaulted taxpayer’s occupation;4. Articles necessary for religious rites or worship, stone monuments and graveyards;5. Articles needed for mourning occasion or funeral ceremony of a defaulted taxpayer and his dependants;6. Genealogical table and other books and documents necessary for a defaulted taxpayer’s home;7. Uniforms and vestment needed for a defaulted taxpayer’s occupation;8. Medals and vouchers of honor;9. Books and equipment needed for education of a defaulted taxpayer and his dependants;10. Unpublished works or inventive items;11. Allowances for death and injuries as paid pursuant to Acts and subordinate statutes;12. Equipment, drugs, and other materials for the medical, midwifery, veterinary business; and13. Small financial property necessary to support the living of a defaulted taxpayer as prescribed by the Presidential Decree.

The following properties may not be attached, if a defaulted taxpayer provides other properties enough to pay national taxes, additional dues and disposition fee for arrears:1. Agricultural tools and equipment, livestock, feed, seeds, and fertilizers;2. Fishing boats, nets, and equipment; and3. Machines, tools, and equipment needed for his business or occupation.

(1) A half of the total amount of wage, pension, pay, salary, bonus, annual allowance, retirement annuity or other wage claim similar thereto shall be unattachable: Provided, That where the amount falls short of the amount prescribed by the Presidential Decree in consideration of the minimum cost of living pursuant to the National Basic Living Security Act, or exceeds the amount prescribed by the Presidential Decree in consideration of the cost of living of standard households, it shall be according to the amount prescribed by the Presidential Decree respectively. <Amended by Act No. 8832, Dec. 31, 2007>(2) A half of the total amount of retirement allowance or other wage claim similar thereto shall be unattachable.[This Article Wholly Amended by Act No. 7931, Apr. 28, 2006]

The director of the tax office may not attach properties other than those necessary for collecting national taxes.[This Article Newly Inserted by Act No. 5190, Dec. 30, 1996]

If the tax officials desire to attach the pledged properties, the pledgee shall deliver the pledge to them regardless of the time of the establishment of the pledge.

The disposition for arrears shall not be adversely affected by the provisional attachment or disposal by the court.

The attachment shall be binding on natural or legal fruits produced from the attached property: Provided, That it shall not be effective on those natural fruits produced from the property which a defaulted taxpayer or a third person uses or takes profits from (excluding the natural fruits not received until the time of transferring its ownership due to the sale of the property).

(1) Even when a defaulted taxpayer dies or a juristic person who is a defaulted taxpayer is dissolved by merger, after a disposition for arrears is taken against the property of the defaulted taxpayer, such disposition for arrears shall continue to proceed.(2) The attachment against the property owned by a defaulted taxpayer, effectuated after his death, shall be deemed to be done against his inheritor.

The tax officials shall take possession of movables and securities to be attached: Provided, That the properties which are difficult to carry may be put under the custody of the head of Si/Gun, a defaulted taxpayer, or a third person. In this case, the attachment shall be marked by sealing the property or by other means.

In case where the attached movables are put under the custody of a defaulted taxpayer or a third person who is entitled to enjoy them under the proviso to Article 38, the director of the tax office may permit him to enjoy them, except for those cases deemed to hinder the collection of national taxes.

(1) In seizing securities, the director of the tax office may collect monetary claims related to such securities.(2) If the monetary claims are collected under paragraph (1), the delinquent amount relating to seizure for the defaulted taxpayer shall be considered to be collected by the director of the tax office within the limit of such monetary claims.

(1) In seizing claims, the director of the tax office shall notify it to the obligor of the relevant claim (hereinafter referred to as the “third obligor”). <Amended by Act No. 8832, Dec. 31, 2007>(2) Upon notification as referred to in paragraph (1), the director of the tax office shall subrogate the obligee who is a defaulted taxpayer within the amount of the national taxes, additional dues and disposition fee for arrears. <Amended by Act No. 8832, Dec. 31, 2007>(3) If the director of the tax office seizes claims under paragraph (1), he shall notify it to the obligee who is a defaulted taxpayer. <Amended by Act No. 8832, Dec. 31, 2007>

Attachment of claims shall enter into force upon delivery of the notification of attachment to the third obligor. <Amended by Act No. 8832, Dec. 31, 2007>

The director of the tax office shall seize claims within the amount of national taxes, additional dues, and disposition fee for arrears: Provided, That he may seize the total amount of claims, if it is deemed necessary to seize the claims exceeding the amount of national taxes, additional dues, and disposition fee for arrears.

Attachment of pay, wage, salary, annual allowance, retirement annuity and other similar claims shall affect the income earned after the attachment to the extent of the amount of national taxes, additional dues, and disposition fee for arrears.

(1) In seizing real estates, vessels, factory foundations, or mining foundations, the director of the tax office shall request the competent registry office of its attachment registration. The same procedures shall be taken for registration of its modification.(2) In dividing or partitioning real estates, factory foundations, or mining foundations in order to attach them, the director of the tax office shall request the competent registry office to make registration therefor. The same procedures shall be taken for registration of its modification or merger.(3) In seizing unregistered real estate, the director of the tax office shall request the competent registry office to make preservation registration with a copy of its cadastre or tenement register.(4) The provisions of Article 41 (3) shall apply mutatis mutandis to the attachment under paragraph (1) or (3).

(1) If the director of the tax office attaches airplanes or helicopters (hereinafter referred to as “aircraft”) registered under the Aviation Act, construction machines registered under the Construction Machinery Management Act, or motor vehicles registered under the Automobile Management Act, he shall request the government agencies concerned of the seizing registration. The same procedures shall be taken for registration of its modification. <Amended by Act No. 3912, Dec. 31, 1986; Act No. 4561, Jun. 11, 1993>(2) In seizing vehicles or construction machines under paragraph (1), the chief of the tax office may order the defaulted taxpayer to deliver them to the office, and he may possess them. <Amended by Act No. 4561, Jun. 11, 1993>(3) The provisions of Article 41 (3) shall apply mutatis mutandis to the attachment under paragraph (1).

(1) The attachment under Article 45 or 46 shall enter into force upon completion of its registration or register.(2) The attachment as provided for in paragraph (1) shall also have its effect on any arrears of the national taxes the legal due date of which comes before the ownership of such attached property is transferred under Article 35 (1) of the Basic Act for National Taxes. <Amended by Act No. 4673, Dec. 31, 1993>

(1) If the director of the tax office attaches the pledged, leased or mortgaged properties, he shall notify it to the creditors.(2) If the creditor who has priority to the national taxes desires to exercise his right after receiving the notification as provided for in paragraph (1), he shall declare his intention to the director of the tax office within ten days from the date of receiving the notification.

(1) The defaulted taxpayer may enjoy the attached real estate, factory foundation, mining foundation, vessels, aircraft, construction machines or vehicles: Provided, That the director of the tax office may restrict the enjoyment if he recognizes that the use may cause a conspicuous decrease of their values. <Amended by Act No. 4561, Jun. 11, 1993>(2) The provisions of paragraph (1) shall apply mutatis mutandis to the third person who has the right to enjoy the attached real estate, factory foundation, mining foundation, vessels, aircraft, construction machines, or vehicles. <Amended by Act No. 4561, Jun. 11, 1993>(3) While executing the disposition for arrears, the director of the tax office may make vessels, aircraft, construction machines, or vehicles temporarily anchor or stop to operate when it is deemed to be necessary: Provided, That this shall not apply to those vessels or aircraft which are completely ready to start. <Amended by Act No. 4561, Jun. 11, 1993>(4) In case of temporary stop or anchorage under paragraph (3), the director of the tax office shall make a disposition necessary for surveillance and preservation.

The third person who desires to get back the attached property by claiming its ownership, shall submit those documents proving the ownership to the director of the tax office at least five days before its sale.

(1) In seizing intangible property rights, the director of the tax office shall notify it to the owner.(2) If the transfer of the attached intangible property rights requires its registration or register, the director of the tax office shall entrust the registration or register of the seizure to the government agencies concerned. The same procedures shall be taken for registration or register of its modification.(3) The provisions of Article 41 (3) shall apply mutatis mutandis to the attachment under paragraph (2).

(1) When the defaulted taxpayer has purchased national or public property, his property rights may be attached even before transferring the ownership.(2) The provisions of Article 41 (3) shall apply mutatis mutandis to the attachment under paragraph (1).(3) In selling the attached property as provided for in paragraph (1), if a purchaser completely pays its price, he shall succeed to all of the defaulted taxpayer’s rights and duties concerning property to the Government or public organizations.

(1) The director of the tax office shall immediately release the attachment in cases falling under any of the following subparagraphs: <Amended by Act No. 8832, Dec. 31, 2007>1. If the attachment is no longer needed because of payment, appropriation, suspension of public auction, cancellation of the imposition, and other reasons;2. If the justification for the third person’s claim on the ownership under Article 50 is deemed to be reasonable; and3. If the third person proves that he has obtained a favorable judgment of the court in the lawsuit on the ownership against the defaulted taxpayer.(2) The director of the tax office may release the attachment of property partially or totally in cases falling under any of the following subparagraphs:1. If the price of the property conspicuously exceeds the total amount of the delinquent amount due to the change of price and other reasons after the attachment;2. If the delinquent amount related to the attachment is partially paid or appropriated;3. If the imposition is partially cancelled; and4. If other attachable properties are provided by the defaulted taxpayer.

(1) If the director of the tax office releases the attachment of property, he shall notify its owner, third obligor, or a third person to whom the attachment was notified of such release. <Amended by Act No. 8832, Dec. 31, 2007>(2) If the attachment was already registered pursuant to paragraph (1), the director of the tax office shall request the government agency concerned to cancel such registration by submitting a record of attachment release.(3) If the director of the tax office releases the attachment of property which has been under custody of a third person, he shall notify the custodian of such release and return the property back to the defaulted taxpayer or the rightful owner. In this case, if he has received a certificate of deposit, such certificate shall be returned.(4) If it is deemed necessary for the case of paragraph (3), the director of the tax office may ask the custodian to deliver the property, if it is deemed necessary. In this case, he shall notify the defaulted taxpayer or the rightful owner to receive the attached property from the custodian.(5) In returning property under custody, the director of the tax office shall obtain a receipt. Instead of the receipt, he may describe the receipt in the attachment report and make the person concerned sign and seal on it.

(1) Documents to be provided for custody of the attached property shall be exempted from stamp taxes.(2) Registration or register of the attachment or release of the attachment shall be exempted from registration taxes.

If any of the provisions of Article 14 (1) 1 through 6 occurs, the director of the tax office shall request the relevant government agency, public organization, executing court, enforcing officer, compulsory administrator, bankruptcy trustee, or liquidator to deliver the national taxes, additional dues and disposition fee for arrears. <Amended by Act No. 6805, Dec. 26, 2002; Act No. 8832, Dec. 31, 2007>

(1) If the property to be attached is under the attachment of another agency, the director of the tax office may participate in the attachment by serving a notice of participation in attachment on the agency which has already attached the property (hereinafter referred to as “agency having already attached”) in place of request for share distribution under Article 56.(2) In participating in the attachment under paragraph (1), the director of the tax office shall notify the defaulted taxpayer and the third person who has the right on the property of such purport.(3) If the property for which the director of the tax office desires to participate in an attachment under paragraph (1), is required to be registered in change of right, he shall entrust registration or register of such participation in attachment to the government agency concerned.Article 58 (Effect, etc. of Participation in Attachment)(1) If the agency having already attached property releases the attachment after the participation in the attachment under Article 57, the participation in the attachment (in case of two or more participations in the attachment for property falling under Article 57 (3), the participation first registered, and in case of two or more participations in the attachment for other property, the participation for which the notice of participation in attachment has first been served) shall retroactively have the effect of attachment as follows: <Amended by Act No. 3661, Dec. 19, 1983>1. With respect to property other than that falling under Article 57 (3), when the notice of participation in attachment is served on the agency having already attached the property; and2. With respect to property falling under Article 57 (3), when the registration or register of participation in attachment is completed.(2) If the agency having already attached the property releases the attachment, it shall issue a notice on the release to the director of the tax office who has participated in the attachment, along with the list of property. In this case, if the agency has occupied or made the third person keep the movables or securities to be released, those properties shall be handed over directly to the director of the tax office who has participated in the attachment: Provided, That in cases where the property is under the custody of the third person, the custody certificate issued by the third person may be handed over to the director of the tax office instead of handing over the property.(3) The director of the tax office who has participated in the attachment may urge the agency which has already attached the property to sell it, when the agency has not sold the attached property for a long time. <Amended by Act No. 8832, Dec. 31, 2007>

The provisions of Articles 53 through 55 shall apply mutatis mutandis to the cancellation of participation in the attachment. <Amended by Act No. 8832, Dec. 31, 2007>

(1) The director of the tax office shall cancel the request for delivery when the taxpayer’s obligation to pay national taxes, additional dues, and disposition fees for arrears is extinguished because of the payment, appropriation, cancellation of the imposition, or for other reasons.(2) The cancellation of the request for delivery under paragraph (1) shall take effect when the agency which has been requested the delivery is notified of such fact.

(1) The director of the tax office shall put up for a public auction those attached movables, securities, real estate, intangible property and those items (excluding currency) received from a defaulted taxpayer under Article 41 (2) under the conditions as prescribed by the Presidential Decree: Provided, That the director of the tax office may have the Korea Asset Management Corporation organized under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Institutions and the Establishment of Korea Asset Management Corporation (hereinafter referred to as the “Korea Assets Management Corporation”) conduct the auction on behalf of the tax office under the conditions as prescribed by the Presidential Decree, when the director of the tax office deems that the attached property is not suitable for public auction by himself because special knowledge is required for their sales or other special circumstances exist. In this case, the public auction shall be considered to be conducted by the director of the tax office. <Amended by Act No. 3661, Dec. 19, 1983; Act No. 4673, Dec. 31 1993; Act No. 5371, Aug. 22, 1997; Act No. 6073, Dec. 31, 1999; Act No. 7931, Apr. 28, 2006>(2) Notwithstanding the main sentence of paragraph (1), the director of the tax office may sell directly in the relevant market the stocks listed on the securities market under Article 9 (13) 1 of the Financial Investment Services and Capital Markets Act or on the KOSDAQ market under subparagraph 2 of the same paragraph from among the securities under Article 4 (1) of the same Act that have been attached. <Newly Inserted by Act No. 7931, Apr. 28, 2006; Act No. 9265, Dec. 26, 2008>(3) The property attached under Article 24 (2) may not be put up for a public auction before determining the obligation to pay the national taxes related to the attachment.(4) The property attached on the grounds of delinquency in the payment of national taxes for which the procedures of objection, or request for review or decision under the Basic Act for National Taxes are pending, or for which administrative litigation is pending shall not be put up for public auction before a decision on such objection or request, or judgment on such litigation becomes final and conclusive: Provided, That the property falling under Article 62 (1) 2 shall be made an exception. <Amended by Act No. 9265, Dec. 26, 2008>(5) Where the Korea Asset Management Corporation conducts the public auction of the attached property by proxy under the proviso to paragraph (1), the “director of the tax office” shall be considered as the “Korea Asset Management Corporation”; “tax officials” as the “staff (including the director; hereinafter the same shall apply) of the Korea Asset Management Corporation”; the “public officials who take the public auction procedure” as the “staff of the Korea Asset Management Corporation who conducts the public auction by proxy”; and the “tax office” as the “head office or branch office of the Korea Asset Management Corporation”, respectively in this section. <Newly Inserted by Act No. 3661, Dec. 19, 1983; Act No. 6073, Dec. 31, 1999>(6) Where the Korea Assets Management Corporation conducts the public auction by proxy under the proviso to paragraph (1), the director of the tax office may pay fees to the Korea Assets Management Corporation under the conditions as prescribed in the Presidential Decree. <Newly Inserted by Act No. 3661, Dec. 19, 1983; Act No. 6073, Dec. 31, 1999>(7) Where the Korea Asset Management Corporation conducts the public auction by proxy under the proviso to paragraph (1), the staff of the Korea Asset Management Corporation as provided for in paragraph (5) shall be considered as tax officials in the application of the penal provisions as prescribed by the Criminal Act and other Acts. <Newly Inserted by Act No. 3661, Dec. 19, 1983; Act No. 6073, Dec. 31, 1999; Act No. 7931, Apr. 28, 2006>(8) Necessary matters concerning the public auction which the Korea Asset Management Corporation conducts by proxy under the proviso to paragraph (1) shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 3661, Dec. 19, 1983; Act No. 6073, Dec. 31, 1999>

(1) Where the attached property falls under any of the following subparagraphs, it may be sold by an optional contract: <Amended by Act No. 4673, Dec. 31, 1993>1. If the sale price can only cover the disposition fee for arrears and there is no room for the balance to occur, when the sale is done by ways other than an optional contract;2. If the property must be sold promptly because its value decreases due to its septic or degenerative nature or loss;3. If the estimated price of the attached property is less than ten million won;4. If the Acts and subordinate statutes restrict the sale or possession of the property;5. If the property can not be sold through the public auction over five times for a year after the first public auction; and6. If the public auction is not proper for the public benefits.(2) The director of the tax office may, if necessary, have the Korea Asset Management Corporation perform by proxy the optional contract as referred to in paragraph (1) under the conditions as prescribed by the Presidential Decree. In this case, the optional contract shall be considered to have been done by the director of the tax office, and the provisions of Articles 61 (5) through (8) shall be applicable mutatis mutandis to the optional contract. <Newly Inserted by Act No. 6053, Dec. 28, 1999; Act No. 6073, Dec. 31, 1999; Act No. 7931, Apr. 28, 2006; Act No. 8832, Dec. 31, 2007>

(1) When the director of the tax office intends to put up the attached property for the public auction, he shall determine its estimated sale price. <Amended by Act No. 3661, Dec. 19, 1983>(2) When it is difficult for the director of the tax office to determine the estimated sale price, he may determine the value thereof by requesting an appraiser to evaluate it under the conditions as prescribed by the Presidential Decree.

A public auction shall be held at a regional tax service, a tax office, a customs house, Si/Gun where the property is located: Provided, That the director of the tax office may assign another place for public auction, if it is deemed necessary.

(1) In selling the attached property, the director of the tax office may receive bid bond or contract deposit, if it is deemed necessary.(2) The amount of the bid bond shall be 10/100 or more of the bid price and the amount of the contract deposit shall be 10/100 or more of the purchase price.(3) The bid bond or contract deposit may be substituted by the state or public bonds or securities listed in the securities market or KOSDAQ market pursuant to the provisions of the Financial Investment Services and Capital Markets Act, or guarantee insurance policies issued by an insurer pursuant to the Insurance Business Act. In this case, the necessary requirements shall be prescribed by the Presidential Decree. <Amended by Act No. 6805, Dec. 26, 2002; Act No. 7931, Apr. 28, 2006; Act No. 9265, Dec. 26, 2008>(4) If the successful bidder does not make a contract to purchase the property, the bid bond shall be reverted to the National Treasury.

No defaulted taxpayer or tax officials may purchase the attached property directly or indirectly.

(1) The public auction shall be conducted by the method of a bid or auction (including what has utilized the information and communications network under subparagraph 18 of Article 2 of the Basic Act for National Taxes). <Amended by Act No. 6805, Dec. 26, 2002>(2) When the director of the tax office intends to conduct the public auction, he shall make the following notification to the public. In this case, the public auction on several occasions such as an auction or re-auction for the identical property may be publicly notified en bloc: <Amended by Act No. 5190, Dec. 30, 1996; Act No. 6053, Dec. 28, 1999; Act No. 7931, Apr. 28, 2006; Act No. 8055, Oct. 27, 2006>1. Time limit for payment of purchase money;2. Name, location, quantity, quality, the estimated sale price and other important factors of the property for public auction;3. Date (the period of bidding in the case of period bidding) and place of auction or bidding;4. Date and place of opening the bids;5. If bid bond is to be received, the amount; and6. If the property for public auction is a share of a common property, the fact that the co-owners (excluding defaulted taxpayers; hereinafter the same shall apply) hold a preferential right to purchase.(3) The public auction notification shall be bulletined at the regional tax service, tax office, customs house, Si/Gun, or other proper places: Provided, That if necessary, it may be announced in the Official Gazette or daily newspapers.(4) In making a public auction notification under paragraph (3), its contents shall be made known by means of the information and communications network under subparagraph 18 of Article 2 of the Basic Act for National Taxes along with a bulletin or announcement. <Newly Inserted by Act No. 6053, Dec. 28, 1999; Act No. 6805, Dec. 26, 2002>(5) For the public auction of the property, an auctioneer may be selected to handle the auction procedure.(6) Matters necessary for the public notification under paragraph (2) shall be determined by the Presidential Decree. <Newly Inserted by Act No. 6053, Dec. 28, 1999>

Upon making the notification under Article 67 (2), the director of the tax office shall inform the persons falling under any of the following subparagraphs of the contents thereof: <Amended by Act No. 6805, Dec. 26, 2002; Act No. 8055, Oct. 27, 2006>1. Defaulted taxpayers;2. Owners of the securities for tax payment;3. Where the property for public auction is a share of the common property, co-owners; and4. Persons who hold rights on lease on a deposit basis, rights of pledge, mortgages and other rights on the property for public auction.

Upon cancelling the attachment of the property concerned before making a notice of sales decision, the director of the tax office shall notify the cancellation of the public auction to the public. <Amended by Act No. 6805, Dec. 26, 2002>

The public auction shall be conducted ten days after the date of notification: Provided, That this shall not apply in cases where it costs much to keep the property, or the value thereof is apprehended to decrease substantially. <Amended by Act No. 8832, Dec. 31, 2007>

(1) If the defaulted taxpayer or the third person has paid up the national taxes, additional amount, and disposition fee for arrears before making a notice of sales decision, the public official who conducts the auction shall suspend the public auction of the property. In this case, he may give a verbal or other notice of the suspension to those bidders instead of making a public notice under Article 69. <Amended by Act No. 6805, Dec. 26, 2002>(2) In putting up various properties for the public auction as a whole, if the proceeds from partial sale are appropriated for the whole defaulted tax amount, the public auction of the remaining properties shall be suspended.

Persons who are deemed to fall under any of the following cases may be restricted by the director of the tax office from participating in the public auction, or from obtaining access to the auction house for two years after the fact is found. This restriction shall also be applied to those who have employed such restricted persons within two years, or employed them as their bidding agents: <Amended by Act No. 8832, Dec. 31, 2007>1. Where he hinders other bidder’s participation in the public auction, the determination of the bidder with the highest price, or the purchaser’s payment of the price;2. Where he colludes with other bidders to unreasonably lower the price of the property at the public auction; and3. Where he files an application for the purchase with a false name.

(1) A bidder shall submit an application stating his name, address, temporary domicile, the denomination of property which he desires to purchase, its price, bid bond, and other necessary descriptions to the public officials who conduct the auction before opening the bids.(2) The public official who conducts the auction shall openly oversee the public auction and enter each bid price in his bidding report.(3) The successful bidder shall be determined by the highest bid price which exceeds the estimated sale price.(4) If there are two or more successful bidders, the final bidder shall be determined by lot, immediately.(5) In the case of paragraph (4), if a bidder is not present or does not draw a lot, a public official who has not been involved in the bidding will draw a lot on his behalf.(6) If there is no bid exceeding the estimated sale price, another bidding may be conducted immediately at the same place.

(1) Where the property for public auction is a share of the common property, any co-owner may provide a bid bond for public auction under Article 65 not later than the notice of sales decision, and submit a report on his intention to purchase the relevant property on the preferential basis at the same price as the highest bidding price which exceeds the estimated sale price.(2) In case of paragraph (1), the director of the tax office shall decide to sell the property for public auction to the co-owner, notwithstanding the provisions of Article 73 (3).(3) When there are several co-owners who have submitted a report on their intention to purchase the property for public auction on the preferential basis and have completed the procedures referred to in paragraph (2), they may purchase the relevant property according to the ratio of their common shares unless there is any special consultation thereabout.(4) Where a person who was decided to purchase the property for public auction under paragraph (2) has failed to pay the purchase price, the director of the tax office may decide to sell the property for public auction to other bidder who offers the highest amount which exceeds the estimated sale price.[This Article Newly Inserted by Act No. 8055, Oct. 27, 2006]

(1) Re-auction shall be conducted when nobody desires to purchase the property for public auction or the bid price is less than the estimated sale price.(2) When the purchaser does not pay the purchase price by the time limit for payment, re-auction shall be conducted after cancelling the sale contract with the purchaser.(3) The provisions of Articles 63 through 73 shall apply mutatis mutandis to the case where a re-auction is conducted. <Amended by Act No. 8832, Dec. 31, 2007>(4) In case where the auction is miscarried or there is no bidder at an auction for the attached property, the estimated sale price shall, at each auction from the next occasion, be gradually decreased by the amount corresponding to 10/100 of the estimated sale price with the limit of the amount corresponding to 50/100 of the estimated sale price, and where the property is not sold even at an auction with the decreased amount corresponding to 50/100 of the estimated sale price, its re-auction may be conducted with the estimated sale price newly determined pursuant to Article 63: Provided, That this shall not be applicable to the case as provided for in Article 73 (6). <Amended by Act No. 6053, Dec. 28, 1999>(5) In case of re-auction under paragraph (1) or (2), the period of notice on public auction as provided for in Article 70 may be shortened by five days.

(1) Upon determining the sale, the director of the tax office shall deliver to the purchaser a notice of decision to sell stating the sale price and the time limit for payment: Provided, That this notice may be substituted by a verbal notice when there is an immediate payment of the purchase price of the property which requires no registration or register of the transfer of its rights.(2) The time limit for payment as provided for in paragraph (1) shall be not more than seven days from the date of determining the sale: Provided, That the director of the tax office may extend the limit within sixty days, if it is deemed necessary. <Amended by Act No. 5190, Dec. 30, 1996>

If the purchaser fails to pay the purchase price by the designated time limit, the director of the tax office shall notify peremptorily the payment by redesignating the time limit.

(1) Upon paying the purchase price, the purchaser shall obtain the property.(2) If the director of the tax office receives the purchase price, the delinquent amount shall be considered to be collected to that extent.

(1) Where falling under one of the following subparagraphs, the director of the tax office shall cancel the decision on sale of attached properties, and notify the purchaser of the said purport:1. After making a decision on sale under Article 75, in case where any defaulted taxpayer has paid the defaulted amount relating to attachment, and the disposition fee for arrears, by obtaining a consent of the purchaser, before the purchaser pays the purchase price, and files an application for a cancellation of the decision on sale; and2. Where the purchaser fails to pay the purchase price not later than the designated time limit, even if a preemptory notice has been made under Article 76.(2) Where any decision on sale of attached properties is cancelled under paragraph (1) 1, the contract deposit shall be returned to the purchaser, and where any decision on sale of attached properties is cancelled under paragraph (1) 2, the contract deposit shall be reverted to the National Treasury.[This Article Wholly Amended by Act No. 6805, Dec. 26, 2002]

If the defaulted taxpayer fails to follow the procedures of transferring rights on sold property, the director of the tax office shall vicariously take the procedures for transferring rights on the sold property under the conditions as prescribed by the Presidential Decree: Provided, That in case where the provisions of Article 61 (1) (proviso) or 62 (2) are applicable, the Korea Asset Management Corporation may conduct it by proxy, and the execution of procedures in this case shall be regarded as having been done by the director of the tax office. <Amended by Act No. 6053, Dec. 28, 1999; Act No. 6073, Dec. 31, 1999>

(1) The director of the tax office shall distribute the money falling under any of the following subparagraphs under Article 81: Provided, That where the provisions of Article 61 (1) (proviso) or 62 (2) are applicable, the Korea Asset Management Corporation may conduct it by proxy, and the distribution of money in this case shall be regarded as having been done by the director of the tax office: <Amended by Act No. 6053, Dec. 28, 1999; Act No. 6073, Dec. 31, 1999; Act No. 7931, Apr. 28, 2006>1. The attached money;2. The money received from the defaulted taxpayer or the third obligor due to the attachment of claims, securities or intangible properties, etc.;3. The proceeds from sale of the attached property and interest for deposit of such proceeds from sale; and4. The money received by requesting delivery.(2) Where the Korea Asset Management Corporation conducts the distribution of money by proxy under the proviso to paragraph (1), the provisions of Article 61 (5) and (7) shall be applied mutatis mutandis. <Newly Inserted by Act No. 6053, Dec. 28, 1999; Act No. 6073, Dec. 31, 1999; Act No. 7931, Apr. 28, 2006>

(1) The money as provided for in Article 80 (1) 2 and 3 shall be distributed to the national taxes, additional dues, disposition fee for arrears, and other claims as provided for in the following subparagraphs: <Amended by Act No. 6805, Dec. 26, 2002>1. The national taxes, additional dues, and disposition fee for arrears related to the attachment;2. The national taxes, additional dues, disposition fee for arrears, local taxes or public charges for which the delivery is requested; and3. Claims secured by the right of lease, pledge, or mortgage related to the attached property.(2) The money as prescribed in Article 80 (1) 1 and 4 shall be appropriated for the national taxes, additional dues and disposition fee for arrears related to the attachment or the request for delivery, respectively. <Amended by Act No. 6805, Dec. 26, 2002>(3) The money left over after distribution under paragraphs (1) and (2) shall be paid back to the defaulted taxpayer.(4) Where the sale price can not cover the total amount of the national taxes, additional dues, disposition fee for arrears, and other claims as provided for in subparagraphs of paragraph (1), the director of the tax office shall distribute the money in the order as prescribed in the Civil Act and other Acts and subordinate statutes.(5) When the director of the tax office has distributed or appropriated the money of the delinquent amount as provided for in paragraph (1) or (2) in preference of the money of the delinquent amount due to misunderstanding of distribution order, unreasonable request for delivery or other reasons analogous to these, he shall return the money to the creditors which have priority over the national taxes by the rule of the national tax refund procedure. <Newly Inserted by Act No. 3661, Dec. 19, 1983>

Distribution of the proceeds from the sale of rights on the national or public properties attached under Article 52 (1), shall be carried out in a manner that the priority shall be given to the remaining installment of the purchase price, and then to the delinquent amount and, if there is still some amount of money left, it shall be returned to the defaulted taxpayer.

(1) When the director of the tax office distributes the money under Article 80, he shall prepare a distribution statement and deliver it to the defaulted taxpayer under the conditions as prescribed by the Presidential Decree. In this case, a person subject to the distribution shall make a request for distribution prior to the preparation of a distribution statement by the director of the tax office. <Amended by Act No. 6805, Dec. 26, 2002; Act No. 7931, Apr. 28, 2006>(2) Disposition for arrears shall be terminated with preparation of the distribution statement as provided for in paragraph (1).(3) A person who has the right of lease on a deposit basis, right of pledge or mortgage on the sold property, a person who is the obligee of provisional attachment on the sold property, or a person who has requested the distribution of proceeds may request the perusal or reproduction of the distribution statement to the director of a tax office. <Amended by Act No. 8832, Dec. 31, 2007>(4) The director of the tax office shall comply with the request for perusal or reproduction as provided for in paragraph (3). <Amended by Act No. 8832, Dec. 31, 2007>

(1) Where there is any distributed money which has not been paid to a creditor, the director of the tax office shall deposit it in the Bank of Korea (including agencies for the National Treasury).(2) Upon deposit as provided for in paragraph (1), the director of the tax office shall inform the creditor of such deposit.(3) The provisions of paragraphs (1) and (2) shall apply to the money to be paid to the defaulted taxpayer.

(1) If there would be no remainder, after the estimated value of the properties which are objects for disposition for arrears is appropriated for the disposition fee for arrears, the disposition for arrears shall be suspended.(2) When properties which are objects for disposition for arrears are such properties as hypothecated for contractual rights as provided for in Article 35 (1) 3 of the Basic Act for National Taxes, if there would be no remainder after the estimated value is appropriated for the disposition fee for arrears and the amount of claims concerned, the provisions of paragraph (1) shall also apply. <Amended by Act No. 4673, Dec. 31, 1993>(3) When suspending the disposition for arrears as provided for in paragraph (1) or (2), the director of the tax office shall through deliberation of the Defaulted National Taxes Adjustment Committee as provided for in Article 87 notify it to the public for a month under the conditions as prescribed by the Presidential Decree.(4) If any cause for suspending disposition for arrears as provided for in paragraph (1) or (2) occurs, the defaulted taxpayer (if he is not the owner of the property which is the object of the disposition for arrears, the owner of the property) may request that the director of the tax office suspend such disposition for arrears. <Newly Inserted by Act No. 4673, Dec. 31, 1993>

(1) The director of the tax office may defer the attachment of properties by disposition for arrears or the sale of attached properties under the conditions as prescribed by the Presidential Decree, when the defaulted taxpayer meets all of the following requirements: <Amended by Act No. 4673, Dec. 31, 1993; Act No. 8832, Dec. 31, 2007>1. If the defaulted taxpayer satisfies the standard of a sincere taxpayer established by the Commissioner of the National Tax Service; and2. If it is deemed that the delinquent amount may be collected by deferring the attachment of properties or the sale of the attached properties and thereby the business may be operated normally.(2) When the director of the tax office defers the attachment or sale under paragraph (1), he may cancel the attachment of property already made, if it is deemed necessary.(3) When the director of the tax office defers the attachment of property or cancels the attachment under paragraphs (1) and (2), he may request that the taxpayer provide a corresponding security for tax payment: Provided, That this shall not apply in cases where the sincere taxpayer submits a plan for the payment of delinquent amount and the Defaulted National Tax Adjustment Committee under Article 87 recognizes the appropriateness of the plan for the payment of delinquent amount. <Amended by Act No. 8832, Dec. 31, 2007>(4) Necessary matters concerning the procedure of application, approval, notice, etc., of the deferment as provided for in paragraph (1) shall be determined by the Presidential Decree.(5) The provisions of Article 20 shall apply mutatis mutandis to the cancellation of the deferment of disposition for arrears and the lump-sum collection of the delinquent amount.[This Article Newly Inserted by Act No. 3661, Dec. 19, 1983]

(1) Where any of the following subparagraphs occurs, the director of the tax office may write off the relevant taxes:1. Where the disposition for arrears is terminated, and the distributed money is short of paying the delinquent amount;2. Where it falls under Article 85;3. Where the extinctive prescription for collection of the national tax is completed; and4. If it is deemed impossible to collect the national taxes under the conditions as prescribed by the Presidential Decree.(2) Upon finding other attachable property after having taken a disposition for write-off in accordance with paragraph (1), the director of the tax office shall cancel such disposition, and take a disposition for recovery of arrears immediately: Provided, That this shall not apply in cases where he has written off on the grounds of paragraph (1) 3. <Amended by Act No. 6053, Dec. 28, 1999; Act No. 9265, Dec. 26, 2008>

(1) The Defaulted National Tax Adjustment Committee shall be established under a regional tax service and other tax offices as designated by the Presidential Decree in order to deliberate on the adjustment of defaulted national taxes.(2) The organization, operation and other requirements of the Defaulted National Tax Adjustment Committee as provided for in paragraph (1) shall be determined by the Presidential Decree.

Matters necessary for the enforcement of this Act shall be prescribed by the Presidential Decree.

ADDENDA(1) (Enforcement Date) This Act shall enter into force on January 1, 1975.(2) (Transitional Measures) Procedures or disposals taken for the collection of national taxes in accordance with the previous provisions shall be considered to be taken under this Act, as far as this Act includes the corresponding provisions.(3) (Ditto) The proviso of Article 21 (including a case where it is applied mutatis mutandis in Article 22 (4)) shall apply to the defaulted national taxes at the time when this Act enters into force.(4) (Applicability) The provisions of Article 22 (3) shall apply to the first increased additional dues for the defaulted national taxes after this Act enters into force.(5) (Relations with Other Acts and Subordinate Statutes) When other Acts and subordinate statutes quote provisions of the previous National Tax Collection Act, they shall be considered to quote the corresponding provisions of this Act.ADDENDA <Act No. 3661, Dec. 19, 1983>

This Act shall enter into force on January 1, 1984.

The amended provisions of the latter part of Article 12 shall apply to the portion for which notice of tax payment is delivered to the taxpayer with the secondary liability for the first time, after this Act enters into force.

The amended provisions of Article 19 (4) shall apply to the portion of the deferment of collection made for the first time under Article 122 of the Company Reorganization Act, after this Act enters into force.

The amended provisions of Article 58 (1) 1 shall apply from the participation in the attachment made for the first time, after this Act enters into force.

Notwithstanding the amended provisions of Articles 21 and 22, previous provisions shall apply to the additional dues (including the increased additional dues which shall be collected in addition to the additional dues) for the national taxes defaulted before this Act enters into force.

ADDENDA <Act No. 3912, Dec. 31, 1986>

This Act shall enter into force on July 1, 1987.

ADDENDA <Act No. 4561, Jun. 11, 1993>

This Act shall enter into force on January 1, 1994.

ADDENDA <Act No. 4673, Dec. 31, 1993>(1) (Enforcement Date) This Act shall enter into force on January 1, 1994.(2) (Applicability to Increased Additional Dues) The amended provisions of Article 22 (1) shall apply to the national taxes in arrears for the first time, after this Act enters into force.(3) (Applicability to Attachment before Becoming Definite) The amended provisions of Article 24 (5) 2 shall apply to those attached for the first time, after this Act enters into force.(4) (Applicability to Effect of Attachment of Real Estate, etc.) The amended provisions of Article 47 (2) shall apply to the attached property the ownership of which is transferred for the first time, after this Act enters into force.ADDENDA <Act No. 4811, Dec. 22, 1994>(1) (Enforcement Date) This Act shall enter into force on January 1, 1995.(2) (Applicability to Deferment of Collection) The amended provisions of Article 15 (1) shall apply to those for which a procedure of a mutual agreement is in progress on the date when this Act enters into force.ADDENDA <Act No. 4981, Dec. 6, 1995>

This Act shall enter into force on January 1, 1996. (Proviso Omitted.)

ADDENDUM <Act No. 5190, Dec. 30, 1996>This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 5 and 6 shall enter into force on March 1, 1997.ADDENDA <Act No. 5371, Aug. 22, 1997>

This Act shall enter into force three months after the date of its promulgation.

ADDENDUM <Act No. 5454, Dec. 13, 1997>This Act shall enter into force on January 1, 1998. (Proviso Omitted.)ADDENDA <Act No. 6053, Dec. 28, 1999>(1) (Enforcement Date) This Act shall enter into force on January 1, 2000.(2) (Applicability to Collection before Payment Period) The amendments to Article 14 (1) 4 shall be applicable from the disposition of transaction suspension taken first by the clearing house after the enforcement of this Act.(3) (Applicability to Public Auction) The amendments to Articles 79 and 80 shall be applicable from the first sale after the enforcement of this Act.ADDENDA <Act No. 6073, Dec. 31, 1999>

The Act shall enter into force on the date of its promulgation.

ADDENDA <Act No. 6805, Dec. 26, 2002>(1) (Enforcement Date) This Act shall enter into force on January 1, 2003.(2) (Applicability to Bid Bond for Public Auction) The amended provisions of Article 65 (3) shall apply to the portion of commencing a public auction first after the enforcement of this Act.(3) (Applicability to Suspension of Public Auction) The amended provisions of Article 71 (1) shall apply to the portion of taking part in a bidding under Article 73 first after the enforcement of this Act.(4) (Applicability to Cancellation of Decision on Sale) The amended provisions of Article 78 (1) 1 shall apply to the portion of making a decision on sale first after the enforcement of this Act.ADDENDA <Act No. 7004, Dec. 30, 2003>(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.(2) (Applicability) The amended provisions of main sentence of Article 21 shall apply to the first portion that arrives its time limit for payment (in the case of the portion whose tax collection is deferred, the period of deferment of collection) after the enforcement of this Act.ADDENDUM <Act No. 7116, Jan. 29, 2004>This Act shall enter into force on the date of its promulgation.ADDENDA <Act No. 7428, Mar. 31, 2005>

This Act shall enter into force one year after the date of its promulgation.

ADDENDA <Act No. 7931, Apr. 28, 2006>

This Act shall enter into force on the date of its promulgation.

The amended provisions of Article 33 shall apply to the portion attached first after the enforcement of this Act.

The amended provisions of Article 61 (2) shall apply to the stocks listed in the securities market or in the KOSDAQ market, which are sold for the first time after the enforcement of this Act.

The amended provisions of Article 65 (3) shall apply to the portion paid first after the enforcement of this Act.

The amended provisions of Article 67 (2) 3 shall apply to the portion announced public auction publicly first after the enforcement of this Act.

The amended provisions of Article 80 (1) 3 shall apply to the portion made the distribution of money first after the enforcement of this Act.

ADDENDA <Act No. 8055, Oct. 27, 2006>(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.(2) (Applicability to Co-owners’ Right for Preferential Purchase) This Act shall apply to the portion for which a public notification for public auction is made on or after the date when this Act enters into force.ADDENDA <Act No. 8832, Dec. 31, 2007>

This Act shall enter into force on January 1, 2008.

The amended provisions of Article 22 (2) shall apply to the portion that is added on or after the date when this Act enters into force.

The amended provisions of proviso to Article 85-2 (3) shall apply to the portion that is requested for deferment of disposition for arrears on or after the date when this Act enters into force.

ADDENDA <Act No. 9265, Dec. 26, 2008>

This Act shall enter into force on January 1, 2009: Provided, That the amended provisions of Articles 61 (2) and 65 (3) shall enter into force on February 4, 2009.

The amended provision of Article 7 (2) shall apply, beginning from the portion that is requested to place restrictions on the government-permitted business for the first time after this Act enters into force.

The amended provision of Article 19 (4) shall apply, beginning from the portion the collection of which is deferred as provided for in Article 140 of the Debtor Rehabilitation and Bankruptcy Act for the first time after this Act enters into force.

The amended provision of Article 23 shall apply, beginning from the portion the time limit for tax payment of which elapses for the first time after this Act enters into force.

The amended provision of Article 61 (4) shall apply, beginning from the portion that is put up for public auction for the fist time after this Act enters into force.