Government to Examine Bank Records of Households Conducting More Than Three Real Estate Trades a Year

Starting from the end of this month, households that have engaged in transactions of real estate more than three times in a year and that have engaged in transactions of real estate worth over a total of 500 million won and hold no proper documentary evidence are subject to examination of their bank records. The director of National Tax Service, director of Korea Customs Service, and governors of provinces will be allowed to make references to financial transactions of tax dodgers related to real estate transactions and delinquent taxpayers of more than 10 million won.

In a cabinet meeting held by President Roh on July 20, the government decided upon an amendment of “enforcement ordinance of real-name financial transactions, and protection of confidentiality.” A “Freedom of public institutional information act,” which calls on national institutions, municipalities, government-invested institutions, schools, public corporations, government-affiliated institutions, and social welfare facilities to release information was also decided on. According to the act, when the amount of information requested is so much that it interrupts normal operations, the information will be first made available only for reading, and copies of the information will be made available within two months or be sent electronically through e-mail.

Jong-Koo Yoon jkmas@donga.com