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LOCAL TAX COLLECTION ACT

Act No. 14476, Dec. 27, 2016

Amended by Act No. 14524, Jan. 4, 2017

Act No. 14839, Jul. 26, 2017

Act No. 15294, Dec. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to secure local tax revenue by providing for matters necessary to collect local taxes.
 Article 2 (Definitions)
(1) The terms used in this Act shall be defined as follows:
1. The term "delinquent taxpayer" means a taxpayer who has failed to pay local tax by the payment deadline;
2. The term "amount of delinquent tax" means delinquent local tax, additional charges and expenses for disposition on default.
(2) In addition to paragraph (1), the definitions of terms used in this Act shall be as prescribed by the Framework Act on Local Taxes.
 Article 3 (Relationship with other Acts)
Among matters provided for in this Act, matters specifically provided for in the Framework Act on Local Taxes or local tax-related Acts referred to in Article 2 (1) 4 of the aforesaid Act (excluding this Act; hereinafter referred to as "local tax-related Acts") shall be as prescribed by the aforesaid Act or local-tax-related Acts.
 Article 4 (Order of Priority for Collection of Money Collectible by Local Governments)
(1) The order of priority for collecting money collectible by local governments shall be in accordance with the following order:
1. Expenses for disposition on default;
2. Local taxes;
3. Additional charges.
(2) In cases falling under paragraph (1) 2, a local government shall collect Do taxes, the collection of which is delegated pursuant to Article 17, in preference to Si/Gun taxes.
 Article 5 (Submission and Issuance of Certificate of Tax Payment)
(1) Where a taxpayer (including a person on whom a tax has not been assessed yet; hereafter in this Article, the same apply) falls under any of the following cases, he/she shall submit a certificate of tax payment, as prescribed by Presidential Decree: Provided, That where he/she submits a certificate of tax payment because he/she falls under subparagraph 4, the foregoing shall be limited to a certificate of tax payment of acquisition tax, property tax, local education tax and regional resource facility tax assessed on the owner of real estate transferred or on the relevant real estate for which tax liability has been realized:
1. Where he/she receives the price from the State, a local government or government agency prescribed by Presidential Decree;
2. Where a foreigner liable to pay local taxes departs from the Republic of Korea;
3. Where a Korean files an application for passport for residential purposes with the Minister of Foreign Affairs to emigrate to a foreign country or stay in a foreign country for more than one year;
4. Where he/she files an application for registration with the head of a registry office to transfer the ownership of real estate to a trustee under a trust under the Trust Act.
(2) Where a tax official receives an application for issuance of a certificate of tax payment from a taxpayer, he/she shall promptly issue a certificate of tax payment after he/she verifies that the taxpayer has paid local taxes.
 Article 6 (Perusal of Unpaid Local Taxes, etc.)
(1) A person who intends to rent and use a residential building prescribed in Article 2 of the Housing Lease Protection Act or commercial building prescribed in Article 2 of the Commercial Building Lease Protection Act may file an application to persue local taxes which a lessor has failed to pay after obtaining consent from the lessor with the head of a local government having jurisdiction over the location of the building he/she intends to rent, before he/she enters into a rental contract for the building. In such cases, the head of the local government shall accept an application for perusal.
(2) Local taxes which a lessee may peruse pursuant to paragraph (1) shall be limited to any of the following local taxes:
1. The amount of delinquent taxes unpaid by the lessor, or local taxes which are not due after the head of a local government has issued a notice to pay local tax or a payment notice;
2. Local taxes unpaid among local taxes for which a lessor has filed tax returns by the deadline for filing tax returns pursuant to local-tax-related Acts.
(3) Matters necessary to file an application for perusal under paragraph (1) shall be prescribed by Presidential Decree.
 Article 7 (Restrictions on Government Licensed Business)
(1) Where a taxpayer fails to pay a local tax other than for reasons prescribed by Presidential Decree, the head of a local government may request the competent authorities having authority over business which requires permission, approval, license, registration, and reporting prescribed by Presidential Decree and the renewal thereof (hereinafter referred to as "permission, etc.") not to grant permission, etc. to the taxpayer.
(2) Where a person who conducts business after obtaining permission, etc. has failed to pay local taxes on at least three occasions, in which case the amount of delinquent local taxes is at least 300,000 won, the head of a local government may request the competent authorities to suspend his/her business or revoke the permission therefor, etc. except in cases prescribed by Presidential Decree.
(3) A local government may specify the amount of delinquent local taxes within the range of at least 300,000 but not exceeding one million won based on which it may request the competent authorities to suspend business of a delinquent taxpayer or revoke the permission, etc. thereof under paragraph (2) by municipal ordinance of the relevant local government.
(4) Where the head of a local government collects the relevant local taxes after requesting them under paragraph (1) or (2), he/she shall immediately withdraw his/her request.
(5) The competent authorities in receipt of a request under paragraph (1) or (2) from the head of a local government shall comply with such request except in extenuating circumstances.
 Article 8 (Requests, etc. for Ban on Departure from Republic of Korea)
(1) The head of a local government shall request the Minister of Justice to ban persons prescribed by Presidential Decree among those who have failed to pay local taxes of at least 30 million won without a justifiable reason from departing from the Republic of Korea pursuant to Article 4 (3) of the Immigration Act. <Amended by Act No. 15294, Dec. 26, 2017>
(2) Where the Minister of Justice bans a person from departing from the Republic of Korea in accordance with a request for departure ban from the Republic of Korea under paragraph (1), he/she shall notify the head of a local government of the result thereof through the information and communication network, etc. under Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc.
(3) In any of the following cases, the head of a local government shall immediately request the Minister of Justice to cancel the departure ban from the Republic of Korea:
1. Where a delinquent taxpayer fully pays the amount of delinquent taxes;
2. Where a ground for banning departure from the Republic of Korea has ceased to exist due to attachment of property of a delinquent taxpayer, his/her provision of security, etc.;
3. Where extinctive prescription of the right of a local government aiming to collect the money to be collected (hereinafter referred to as "right to collect local tax") by the local government is complete;
4. Where other reasons prescribed by Presidential Decree exist.
(4) In addition to the matters provided for in paragraphs (1) through (3), necessary matters concerning procedures for requesting, etc. a ban on departure from the Republic of Korea shall be prescribed by Presidential Decree.
 Article 9 (Provision of Data concerning Delinquent Taxes or Write-offs)
(1) Where a credit information company or credit information collection agency prescribed in Article 2 of the Credit Information Use and Protection Act, or any other person prescribed by Presidential Decree requests the head of a local government to provide data concerning the personal details of any of the following delinquent taxpayers or persons whose delinquent taxes have been written off, the amount of delinquent taxes or the amount of delinquent taxes written off (hereinafter referred to as "data concerning measures to collect delinquent taxes or write-off"), in which case such data is required to collect local taxes or for public service purposes, the head of the local government may provide data: Provided, That the foregoing shall not apply where an objection, request for examination, request for trial or administrative litigation under the Framework Act on Local Taxes is pending in relation to delinquent local taxes, or other cases prescribed by Presidential Decree exist:
1. A person in whose case one year has elapsed from the date he/she failed to pay local taxes and the amount of delinquent local taxes (including delinquent local taxes which have been written off but the extinctive prescription of the right to collect local taxes is not complete; hereafter in this Article and Article 10, the same shall apply) exceeds the amount prescribed by Presidential Decree;
2. A person who has failed to pay local taxes on at least three occasions a year and the amount of delinquent local taxes exceeds the amount prescribed by Presidential Decree.
(2) Necessary matters concerning procedures, etc. for providing data concerning delinquent local taxes or write-offs under paragraph (1) shall be prescribed by Presidential Decree.
(3) No person to whom data concerning delinquent local taxes or write-offs has been provided pursuant to paragraph (1) shall divulge or use such data for purposes other than for his/her business.
 Article 10 (Providing, etc. Data concerning Delinquent Taxes of Foreigners)
(1) The Minister of the Interior and Safety or the head of a local government may provide data concerning the personal details of any of the following foreigners who have failed to pay local taxes, and the amount of delinquent local taxes to the Minister of Justice for the management of such foreigners, the collection of local taxes, etc.: <Amended by Act No. 14839, Jul. 26, 2017>
1. A person in whose case one year has elapsed from the date he/she failed to pay local taxes and the amount of delinquent local taxes exceeds the amount prescribed by Presidential Decree, which is not less than one million won;
2. A person who has failed to pay local taxes on at least three occasions a year and the amount of delinquent local taxes exceeds the amount prescribed by Presidential Decree, which is not less than 50,000 won.
(2) Methods of and procedures for providing data concerning the amount of delinquent local taxes under paragraph (1), and other necessary matters shall be prescribed by Presidential Decree.
(3) The Minister of Justice to whom data concerning the amount of delinquent local taxes have been provided pursuant to paragraph (1) shall not divulge or use such data for purposes other than his/her affairs.
 Article 11 (Disclosure of List of Persons Who have Failed to Pay Local Taxes in Large Amount or habitually)
(1) Notwithstanding Article 86 of the Framework Act on Local Taxes, the head of a local government may disclose the personal details of a person who has failed to pay local taxes (including local taxes written off but the extinctive prescription of the right to collect local taxes which is not complete) of at least ten million won, in whose case one year has elapsed from the date he/she failed to pay local taxes, the amount of delinquent local taxes, etc. (hereinafter referred to as "information about delinquent local taxes") following deliberation by the local tax deliberative committee (hereinafter referred to as "local tax deliberative committee") under Article 147 of the Framework Act on Local Taxes: Provided, That where an appeal, such as an objection or request for examination, is made concerning delinquent local taxes, or other reasons prescribed by Presidential Decree exist, the head of the local government shall not disclose information about delinquent local taxes.
(2) The head of a local government may specifically prescribe the minimum amount within the range of at least ten million but not exceeding 30 million won which becomes the basis for the disclosure of information about delinquent local taxes under the main sentence of paragraph (1) by municipal ordinance of the local government.
(3) The head of a local government shall notify persons subject to disclosure on a list of delinquent taxpayers after deliberation by the local tax deliberative committee of the fact that they are subject to disclosure on the list thereof and provide them with an opportunity to make explanations, and select persons subject to disclosure thereby by requiring the local tax deliberative committee to re-deliberate on whether to disclose the list of delinquent taxpayers in consideration of the payment of delinquent local taxes, etc. after six months from the date of notification.
(4) The head of a local government shall disclose information about delinquent local taxes under paragraph (1) by publishing it in the Official Gazette or the official report, or via the information and communication network or on the bulletin board of the Ministry of the Interior and Safety or the local government, or by providing information about delinquent local taxes where news media prescribed in subparagraph 1 of Article 2 of the Act on Press Arbitration and Remedies, etc. for Damage Caused by Press Reports, so request. <Amended by Act No. 14839, Jul. 26, 2017>
(5) Information about delinquent local taxes disclosed pursuant to paragraph (1) shall include the name, trade name (including the name of a corporation), age, occupation, domicile or place of business (including the road name under subparagraph 5 of Article 2 of the Road Name Address Act and the building number under subparagraph 7 of the aforesaid Article) of delinquent taxpayers, tax items of delinquent local taxes, payment deadline, a summary of reasons for failing to pay local taxes, etc.
(6) Matters necessary for the disclosure, etc. of a list of delinquent taxpayers under paragraphs (1) through (5) shall be prescribed by Presidential Decree.
CHAPTER II COLLECTION
SECTION 1 Procedures for Collection
 Article 12 (Notice, etc. to Pay Taxes)
(1) Where the head of a local government intends to collect a local tax, he/she shall give written notice to a taxpayer (including electronic documents; hereinafter the same shall apply), specifying the taxable year, the tax item, the amount of such local tax, grounds for the calculation thereof, the deadline for the payment thereof, and the place where the taxpayer pays the local tax.
(2) Where the head of a local government collects expenses for disposition on default from a taxpayer who has fully paid the local tax and additional charges only among the amount of delinquent local tax, he/she shall give written notice to the taxpayer, as prescribed by Presidential Decree.
 Article 13 (Timing of Issuing Notice to Pay Local Taxes)
The timing of issuing notice to pay local taxes shall be classified as follows:
1. Where the payment deadline is fixed: Five days before the period of payment begins;
2. Where the payment deadline is not fixed: At the time the head of a local government determines the imposition of local tax;
3. Where the deferment, etc. of the collection of local tax is allowed within a fixed period pursuant to statutes: The day after the date the period expires.
 Article 14 (Designation of payment deadline)
The head of a local government may designate the payment deadline of the money collectible by the local government, within 30 days from the date he/she gives notice to pay local tax or payment notice.
 Article 15 (Payment Notice to Secondary Taxpayers)
Where the head of a local government intends to collect the money collectible by the local government from a secondary taxpayer (including a guarantor; hereinafter the same shall apply) under Articles 45 through 48 of the Framework Act on Local Taxes, he/she shall notify the secondary taxpayer with a payment notice, stating the taxable year, the tax item, the amount of money collectible by the local government from the secondary taxpayer, grounds for the calculation thereof, payment deadline, the place to pay local tax, and the amount of money to be collected from the secondary taxpayer, grounds for the calculation thereof, and other necessary matters. In such cases, the head of the local government shall also notify the taxpayer thereof.
 Article 16 (Procedures for Collecting from Mortgagee)
(1) Where the head of a local government collects the money collectible by the local government from a mortgagee pursuant to Article 75 of the Framework Act on Local Taxes, he/she shall notify the mortgagee of payment in advance applying Article 15 mutatis mutandis.
(2) Article 22 shall apply mutatis mutandis where the head of a local government collects the money collectible by the local government from a mortgagee.
(3) The property shall be deemed mortgaged property even if a secured claim following the transfer of such property has been extinguished due to nonfulfillment of obligations or grounds other than repayment (including where a contract becomes invalid due to the lapse of deadline or grounds other than the fulfillment of contract where the repurchase of mortgaged property, appointment of resale and repurchase or other similar contract has been entered into) after notification under paragraph (1) or the mortgaged property is seized.
 Article 17 (Delegation of Collection of Do Taxes, etc.)
(1) The head of a Si/Gun/Gu shall be liable to collect Special Metropolitan City tax, Metropolitan City tax or Do tax (hereinafter referred to as "City/Do tax") within the jurisdiction of such Si/Gun/Gu and pay such City/Do tax to a Special Metropolitan City, Metropolitan City or Do (hereinafter referred to as "City/Do"): Provided, That where necessary, the Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do Governor (hereinafter referred to as the "Mayor/Do Governor") may directly issue notice to pay local taxes to taxpayers.
(2) Expenses incurred in collecting City/Do taxes under paragraph (1) shall be borne by Each Si/Gun/Gu; and collection subsidies shall be granted to Si/Gun/Gu as expenses therein, as prescribed by municipal ordinance of the City/Do in accordance with rates of and standards for subsidies prescribed by Presidential Decree: Provided, That where a City/Do tax and pro rata Special City portion of property tax under Article 9 of the Framework Act on Local Taxes is to be collected together with the relevant local tax, stating such taxes in the notice to pay the relevant local tax, no collection subsidies shall be granted.
 Article 18 (Entrustment of Collection)
(1) Where the domicile or property of a person liable to pay money collectible by a local government pursuant to the Framework Act on Local Taxes, this Act or local tax-related Acts is located in the jurisdiction of another local government, a tax official may entrust a tax official in the jurisdiction of the domicile or the location of property with collecting the same.
(2) A local government to which a tax official entrusted with collecting local taxes pursuant to paragraph (1) belongs shall bear expenses for affairs entrusted, remittance expenses, and expenses for disposition on default; and shall remit the amount calculated by subtracting the following amounts from the money collectible by the local government to the local government to which a tax official who has entrusted the collection thereof belongs:
1. Amount calculated by multiplying the amount obtained by subtracting expenses for a disposition on default from the money collectible by the local government, by the rate prescribed by Presidential Decree;
2. Expenses for disposition on default.
(3) Local governments may agree on the entrustment of the collection of local taxes. In such cases, the agreement concerning the entrustment of the collection of local taxes shall include matters concerning the details and scope of affairs concerning entrustment of the collection thereof, expenses incurred in managing and conducting affairs concerning the entrustment of the collection thereof, bearing expenses, etc.
 Article 19 (Exemption from Liability to Remit Money Collectible by Local Governments)
(1) Where a person obligated to specially collect Si/Gun/Gu tax or Special Metropolitan City tax, Metropolitan City tax, Special Self-Governing City tax, Do tax or Special Self-Governing Province tax loses money collectible by the local government due to an unavoidable incident, he/she may request exemption from remitting such money collectible by a local government to the head of a Si/Gun/Gu in cases of Si/Gun/Gu tax, or to the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Special Self-Governing City Mayor, the Do Governor or the Special Self-Governing Province Governor in cases of Special Metropolitan City tax, Metropolitan City tax, Special Self-Governing City tax, Do tax or Special Self-Governing Province tax by proving the fact.
(2) The head of a local government shall determine whether to exempt a person obligated to specially collect from the obligation to pay the money collected within 30 days from the date he/she receives a request under paragraph (1).
(3) A person who has an objection to the determination under paragraph (2) may make a request for examination to the Minister of the Interior and Safety in cases of Special Metropolitan City tax, Metropolitan City tax, Special Self-Governing City tax, Do tax or Special Self-Governing Province tax, or to the Mayor/Do Governor in cases of Si/Gun/Gu tax within 14 days from the date he/she is notified of such determination. <Amended by Act No. 14839, Jul. 26, 2017>
(4) The Minister of the Interior and Safety or the Mayor/Do Governor shall make the determination within 30 days from the date he/she receives a request for examination under paragraph (3). <Amended by Act No. 14839, Jul. 26, 2017>
 Article 20 (Payment by Third Party)
(1) A third party may pay money collectible by a local government on behalf of a taxpayer.
(2) Money paid by a third party under paragraph (1) shall be limited to payments made in the name of a taxpayer.
(3) No third party who has paid the money collectible by a local government for a taxpayer pursuant to paragraph (1) shall request the local government to return the money.
 Article 21 (Prohibition of Offset of Local Taxes)
Except as otherwise expressly provided for in any Act, no money collectible by a local government and claims against a local government for the purpose of the payment of money shall be offset. The foregoing shall also apply to claims for refunds and debts owed to a local government for the purpose of the payment of money.
 Article 22 (Collection Before Payment Deadline)
(1) Where a taxpayer falls under any of the following, the head of a local government may collect the money collectible by the local government by determining local taxes for which tax liability has already been realized even before the payment deadline:
1. Where the taxpayer is issued a disposition on default of national taxes, local taxes or other public charges;
2. Where the taxpayer is subject to compulsory execution;
3. Where an auction occurs;
4. Where a corporation is dissolved;
5. Where the taxpayer is deemed to have performed an act to evade the money collectible by the local government;
6. Where the taxpayer is subject to a disposition to suspend a transaction by a clearing house under the Bills of Exchange and Promissory Notes Act and the Check Act;
7. Where the taxpayer fails to designate his/her tax payment administrator without his/her domicile or place of residence in the Republic of Korea;
8. Where the taxpayer files an application for registration with the head of a registry office to transfer the ownership of real estate for which tax liability has been realized on the grounds of trust under the Trust Act.
(2) Where the head of a local government intends to collect local taxes before the payment deadline pursuant to paragraph (1), he/she shall notify taxpayers of the intention to collect them by fixing the payment deadline. In such cases, where he/she has already given notice to pay local tax, he/she shall give notice of change to the payment deadline in writing.
 Article 23 (Payment of Local Taxes by Credit Card)
(1) A taxpayer may pay local taxes on the tax items prescribed by Presidential Decree among local taxes for which he/she has filed tax returns or which the head of a local government has determined or corrected pursuant to the Framework Act on Local Taxes or local tax-related Acts by credit card to a local tax collection agency prescribed by Presidential Decree (hereinafter referred to as “local tax collection agency”).
(2) A taxpayer may pay local taxes (excluding local taxes imposed and collected as relevant) under Article 35 (1) 3 of the Framework Act on Local Taxes by credit card through a local tax collection agency: Provided, That the foregoing shall not apply to local taxes the payment deadline of which has expired.
(3) Where a taxpayer pays local taxes by credit card pursuant to paragraphs (1) and (2), the date of approval set by a local tax collection agency shall be deemed the date for payment.
(4) The head of a local government may restrict persons prescribed by Presidential Decree from paying local taxes by credit card among those who have failed to pay local taxes.
(5) Other necessary matters concerning paying local taxes by credit card shall be prescribed by Presidential Decree.
 Article 24 (Payment of Local Taxes by Automatic Transfer)
A taxpayer who has opened a deposit account at a local tax collection agency may pay local taxes by executing automatic transfer from the relevant deposit account: Provided, That the foregoing shall not apply to local taxes the payment deadline of which has expired.
SECTION 2 Deferment of Collection
 Article 25 (Requirements for Deferment, etc. of Collection)
(1) Where the head of a local government deems that a taxpayer is unable to pay money collectible by the local government because he/she falls under any of the following cases, the head of the local government may determine the deferment of notice, notice to pay local tax in installments, the deferment of the collection of the money, and the deferment of the collection of the amount of delinquent local taxes (hereinafter referred to as "deferment of collection, etc."), as prescribed by Presidential Decree:
1. Where substantial loss has been incurred by his/her property due to damage from storm and flood, lightning, fire, war, other disaster or theft;
2. Where substantial loss has been incurred by his/her business;
3. Where his/her business faces a serious crisis;
4. Where the taxpayer or his/her family residing together with him/her should receive long-term medical treatment due to a disease or serious injury;
5. Where the local government is negotiating a mutual agreement with the foreign authorities in accordance with the tax treaties. In such cases, special cases concerning deferring collection under Article 24 (2) through (6) of the Adjustment of International Taxes Act shall apply thereto;
6. Other reasons corresponding to cases referred to in subparagraphs 1 through 4.
(2) A taxpayer who intends to obtain the deferment of collection, etc. pursuant to paragraph (1) shall file an application for deferment thereof with the head of a local government, as prescribed by Presidential Decree.
(3) Where the head of a local government permits the deferment of collection, etc. pursuant to paragraph (1), he/she shall notify a taxpayer such has been deferred, as prescribed by Presidential Decree.
 Article 26 (Deferment, etc. of Collection and Withdrawal from Imposition due to Failure in Service)
(1) Where the head of a local government is unable to serve a notice to pay local tax for reasons prescribed by Presidential Decree, such as where a taxpayer's address or place of business is unknown, he/she may defer the collection of local tax for a period prescribed by Presidential Decree in lieu of service by publication under Article 33 of the Framework Act on Local Taxes.
(2) Where the head of a local government deems that he/she is unable to collect local taxes, the collection os which he/she has deferred pursuant to paragraph (1), he/she may withdraw his/her determination imposing the same.
(3) Where the head of a local government finds the whereabouts or property of a taxpayer after he/she has deferred the collection of local taxes pursuant to paragraph (1) or withdrawn his/her determination imposing the same pursuant to paragraph (2), he/she shall immediately follow procedures for imposing or collecting local taxes.
 Article 27 (Security for Deferment of Collection, etc.)
Where the head of a local government determines the deferment of collection, etc. pursuant to Article 25, he/she may request a taxpayer to pledge property as security for the payment of local tax equivalent to the amount deferred.
 Article 28 (Effect of Deferment of Collection, etc.)
(1) The head of a local government shall not collect additional charges, increased additional charges for the money collectible by the local government, the collection of which he/she has deferred, or take measures to collect delinquent local taxes (excluding a request for making grants) during the period for which he/she defers the collection, etc. pursuant to Article 25.
(2) Where the collection of local taxes is deferred pursuant to Article 140 of the Debtor Rehabilitation and Bankruptcy Act, the period of deferment of the collection thereof shall not be included in calculating additional charges and increased additional charges.
(3) Where the head of a local government defers the collection of local taxes because the local government is discussing procedures for mutual agreement with the foreign authorities, paragraph (1) shall not apply, but special cases concerning additional charges under Article 24 (5) of the Adjustment of International Taxes Act shall apply.
 Article 29 (Cancellation of Deferment of Collection, etc.)
(1) Where a person who has obtained deferred collection, etc. pursuant to Article 25 falls under any of the following cases, the head of a local government may cancel deferred collection, etc., and collect the money collectible by the local government related to deferred collection or the amount of delinquent local taxes in lump sum:
1. Where the person fails to pay local taxes and the amount of delinquent local taxes by the designated deadline;
2. Where the person fails to comply with a request to change security or an order issued by the head of a local government to possess security;
3. Where the head of the local government deems deferred collection unnecessary due to changes in the financial position of the person who has obtained the deferment of collection, etc. or in his/her business;
4. Where the head of the local government deems that he/she is unable to collect the full amount of the money collectible by the local government or the amount of delinquent local taxes related to deferred collection thereof by the payment deadline deferred because the taxpayer falls under any of the subparagraphs of Article 22 (1).
(2) Where the head of the local government cancels deferred collection, etc. pursuant to paragraph (1), he/she shall notify a taxpayer of the cancellation thereof.
SECTION 3 Dunning
 Article 30 (Additional Charges)
Where a taxpayer fails to fully pay local tax by the payment deadline, the head of a local government shall collect additional charges equivalent to 3/100 of the delinquent local tax from the date the payment deadline expires: Provided, That the head of the local government shall not collect additional charges from the State and other local governments (including the Local Government Association).
 Article 31 (Increased Additional Charges)
(1) Where a taxpayer fails to pay delinquent local tax, the head of a local government shall collect additional charges equivalent to 12/1,000 of the delinquent local tax (hereinafter referred to as "increased additional charges") each month from the date the payment deadline expires in addition to additional charges under Article 30. In such cases, the period during which the head of the local government collects increased additional charges shall not exceed 60 months.
(2) Paragraph (1) shall not apply to cases falling under the proviso to Article 30 and where the amount of delinquent local tax stated in each notice to pay local tax is less than 300,000 won. In such cases, where at least two tax items are stated in a notice to pay local taxes, a decision shall be made based on each tax item.
(3) Where the head of a local government defers the collection of the amount of delinquent local taxes because the local government is discussing procedures for mutual agreement with the foreign authorities, paragraph (1) shall not apply, but special cases concerning additional charges under Article 24 (5) of the Adjustment of International Taxes Act shall apply.
 Article 32 (Dunning and Notices of Demand)
(1) Where a taxpayer (excluding a secondary taxpayer) fails to fully pay a local tax by the payment deadline, the head of a local government shall send a dunning letter within 50 days from the date the payment deadline expires: Provided, That the foregoing shall not apply where the head of the local government collects a local tax pursuant to Article 22.
(2) Where a person secondarily liable to pay a local tax fails to fully pay the amount of delinquent local tax by the payment deadline, the head of a local government shall give notice of demand within ten days after the payment deadline expires, except where he/she collects delinquent local taxes pursuant to Article 22 (1).
(3) Where a dunning letter or notice of demand is issued, the payment deadline shall expire within ten days from the date of issuance.
CHAPTER III DISPOSITIONS ON DEFAULT
SECTION 1 Procedures for Collecting Delinquent Local Taxes
 Article 33 (Attachment)
(1) In any of the following cases, the head of a local government shall attach the property of a taxpayer:
1. Where the taxpayer fails to fully pay the money collectible by the local government by a designated deadline after having received a dunning letter (including a notice of demand; hereinafter the same shall apply);
2. Where the taxpayer fails to fully pay the money collectible by the local government, by a designated deadline after having received a notice of demand before the payment deadline specified in Article 22 (1).
(2) Notwithstanding paragraph (1), where the head of a local government deems that he/she is impracticable to collect a local tax for tax liability already realized for reasons mentioned in any subparagraph of Article 22 (1), he/she may attach the property of the taxpayer even before the payment deadline. In such cases, the head of the local government shall attach the property of the taxpayer within the limits of the amount of money on which tax liability is presumed confirmed.
(3) Where the head of a local government deems that it is impracticable to collect local taxes of which notice of payment he/she has given or the amount of such delinquent local tax if he/she waits until the payment deadline because the taxpayer is likely to flee after receiving a notice of payment or dunning letter, paragraph (2) shall apply.
(4) Where the head of a local government attaches the property pursuant to paragraph (2) or (3), he/she shall notify the relevant taxpayer of the attachment thereof in writing.
(5) In any of the following cases, the head of a local government shall immediately release the property from attachment under paragraph (2) or (3):
1. Where a person who has received a notice under paragraph (4) pledges property as security for payment of local tax and requests the head of a local government to release the property from attachment;
2. Where the head of a local government has not confirmed local taxes he/she intends to collect by the attachment of property within three months from the date he/she attached property.
(6) Where the property attached pursuant to paragraph (2) or (3) is money, a deposit or securities which he/she may collect by the payment deadline, he/she may appropriate the attached property for the confirmed money collectible by the local government when a taxpayer files an application for such appropriation.
 Article 34 (Presentation of Identity Card)
Where a tax official inquires, examines or searches, or attaches property to collect a delinquent local tax, he/she shall carry an identity document proving his/her identity and present it to relevant persons.
 Article 35 (Authority to Conduct and Methods of Conducting Search)
(1) Where necessary to attach property, a tax official may search a house, ship, warehouse or other places, of a delinquent taxpayer or may require the delinquent taxpayer to open, or may directly open, a closed door, safe or fixtures. The foregoing shall also apply where a third party who occupies the property of the delinquent taxpayer, refuses access to the property.
(2) Where a tax official deems that a delinquent taxpayer is under suspicion of hiding his/her property in a house, ship, warehouse, or other places of a third party, the tax official may search the house, ship, warehouse or other places of the third party, or may require the third party to open, or directly open, a closed door, safe or fixtures.
(3) A tax official may conduct a search under paragraph (1) or (2) from sunrise until sunset: Provided, That where he/she commences the search before sunset, he/she may continue the search after sunset.
(4) Notwithstanding paragraph (3), a tax official may commence a search of an establishment where business prescribed by Presidential Decree is mainly conducted at night, even after sunset while it is open for business.
(5) Where a tax official finds no property to be attached even though he/she has conducted a search pursuant to paragraph (1) or (2), he/she shall prepare a search report and sign and seal the search report along with a delinquent taxpayer or participants under Article 37, and where any participant refuses to sign and seal, the tax official shall also note the participant's refusal in the search report.
(6) Where a tax official prepares a search report pursuant to paragraph (5), he/she shall deliver a certified copy of the search report to a delinquent taxpayer whose property, etc. have been searched or participants.
 Article 36 (Authority to Inquire and Inspect after collecting Delinquent Local Taxes)
Where a tax official intends to ascertain the location or quantity of property to be attached while he/she collects delinquent local taxes, he/she may inquire any of the following persons, or inspect books, documents or other articles, or require any of the following persons to submit books, documents or other articles:
1. A delinquent taxpayer;
2. A person in a business relationship with a delinquent taxpayer;
3. A person who occupies the property of a delinquent taxpayer;
4. A person who has a claim and obligation relationship with a delinquent taxpayer;
5. A corporation in which a delinquent taxpayer is a stockholder or employee;
6. A stockholder or employee of a corporation which is a delinquent taxpayer;
7. A person who is deemed to be under suspicion of hiding the property of a delinquent taxpayer, who is a relative prescribed by Presidential Decree.
 Article 37 (Establishing Participants)
(1) Where a tax official conducts a search pursuant to Article 35 or conducts an inspection pursuant to Article 36, he/she shall require a person whose property, etc. are searched or inspected, his/her family, a person residing together or employee, or other worker to participate in the search or inspection as witnesses.
(2) In cases falling under paragraph (1), when no participant or no person complies with a request for participation, a tax official shall require at least two adults or a public official of another local government or police officer to participate in the search or inspection as witnesses.
 Article 38 (Record of Attachment)
(1) Where a tax official attaches the property of a delinquent taxpayer, he/she shall record the attachment. In such cases, where the attached property falls under any of the following cases, he/she shall deliver a certified copy thereof to the delinquent taxpayer:
1. Movable property or securities;
2. Claims;
3. Property rights excluding claims and ownership (hereinafter referred to as "intangible property rights").
(2) A tax official shall obtain signatures and seals of participants under Article 37 to a record of attachment, and where a participant refuses to sign and seal, the tax official shall also note the participant's refusal in the record of attachment.
(3) Where a tax official attaches movable property or securities on which the right of pledge has been established, he/she shall deliver a certified copy of a record of attachment to a pledgee of such movable property or securities.
(4) Where a tax official attaches a claim, he/she shall also state the purport that the collection of the claim or other disposal is prohibited, in the record of attachment.
 Article 39 (Nullifying Fraudulent Conduct and Restoration to Original Condition)
Where a taxpayer performs a legal act aimed at property rights (including fraudulent trust under the Trust Act) to evade local tax when the head of a local government collects delinquent local taxes, the head of the local government may request a court to order such fraudulent conduct nullified and to reinstate rights by applying mutatis mutandis Articles 406 and 407 of the Civil Act and Article 8 of the Trust Act.
SECTION 2 Property Prohibited from Attachment
 Article 40 (Property Prohibited from Attachment)
None of the following property shall be attached:
1. Clothes, bedclothes, furniture, and kitchenware essential for the livelihood of a delinquent taxpayer and his/her family residing together;
2. Food and fuels for three months’ supply necessary for a delinquent taxpayer and his/her family residing together;
3. A delinquent taxpayer's registered seal or other seals necessary for his/her occupation;
4. Things necessary for a memorial service or worship, a tombstone and grave;
5. Things necessary for mourning and a funeral service of a delinquent taxpayer or his/her family residing together;
6. A genealogical table or other books and documents necessary for the family of a delinquent taxpayer;
7. Uniforms necessary for duties;
8. Medals or other honorary decorations;
9. Books and utensils necessary for studies of a delinquent taxpayer and his/her family residing together;
10. Unpublished inventions or written works;
11. Compensation benefits for death and compensation benefits for injury provided pursuant to statutes;
12. Instruments, pharmaceutical drugs and other materials necessary for medical services, midwifery services or veterinary services;
13. An amount of money repayable first pursuant to Article 8 of the Housing Lease Protection Act and the Enforcement Decree of the aforesaid Act;
14. Financial assets in a small amount necessary to maintain a livelihood of a delinquent taxpayer, which are prescribed by Presidential Decree.
 Article 41 (Property not Subject to Attachment with Condition)
None of the following property shall be attached when a delinquent taxpayer provides other property that may be appropriated for the amount of delinquent local taxes:
1. Machinery and equipment necessary for farming, livestock feed, seeds and fertilizers;
2. Fishing nets, fishing gear and a fishing vessel necessary for fishery;
3. Machinery, equipment and supplies necessary for an occupation or business.
 Article 42 (Restrictions on Attachment of Salaries)
(1) With respect to pay, pension, wages, a salary, bonus, annual allowance, retirement pension and other remuneration similar in character thereto, 1/2 of the total amount shall not be attached: Provided, That where the amount of money is less than the amount of money prescribed by Presidential Decree in consideration of the minimum cost of living of standard households under the National Basic Living Security Act, or exceeds the amount of money prescribed by Presidential Decree based on the cost of living of standard households, the amount of money prescribed by Presidential Decree shall not be attached, respectively.
(2) With respect to a retirement allowance or other remuneration similar in character thereto, 1/2 of the total amount shall not be attached.
 Article 43 (Prohibition of Attachment in Excess)
The head of a local government shall not attach property other than property necessary to collect local taxes.
SECTION 3 Validity of Collection of Delinquent Taxes
 Article 44 (Attachment of Property on Which Right of Pledge Is Established)
(1) Where a tax official intends to attach property on which the right of pledge is established, he/she shall request in writing the pledgee to deliver the subject matter of the right of pledge. In such cases, the pledgee shall deliver the subject matter of the right of pledge to the tax official irrespective of the time the right of pledge is established.
(2) Where a pledgee fails to deliver the subject matter of the right of pledge pursuant to paragraph (1), a tax official shall immediately attach the property.
 Article 45 (Validity of Collection of Delinquent Local Taxes on Property provisionally Attached or Disposed of)
Even where property provisionally attached or disposed of in a trial is subject to collecting delinquent local taxes, a tax official shall collect the delinquent local taxes in the same manner as delinquent taxes are collected under this Act.
 Article 46 (Validity of Attachment of Fruits)
The effect of attachment shall extend to natural fruits or legal fruits generated from the attached property: Provided, That where a delinquent taxpayer or a third party uses or profits from the attached property, attachment shall not be extended to natural fruits (excluding natural fruits not harvested until the right is transferred following the sale of the attached property) generated from the attached property.
 Article 47 (Validity of Collection of Delinquent Taxes in Cases of Inheritance or Merger)
(1) Even where a delinquent taxpayer dies after a tax official has collected delinquent local taxes on the property of the delinquent taxpayer, or a corporation which is a delinquent taxpayer ceases to exist following a merger, the collection of delinquent local taxes on the property shall be performed continuously.
(2) Property in the name of a delinquent taxpayer after the taxpayer dies shall be deemed attached in respect of his/her successor who has inherited the property.
SECTION 4 Attachment of Movables and Securities
 Article 48 (Attachment of Movables and Securities)
Movables or securities shall be attached by being possessed by a tax official.
 Article 49 (Use of or Making Profits from Attached Movable Property)
(1) Notwithstanding Article 48, a delinquent taxpayer or third party may take custody of the movable property difficult to be transported. In such cases, the tax official shall clarify that such movable property is attached property by sealing or other methods.
(2) Where the head of a local government permits a delinquent taxpayer or a third party who has the right to use or profit from movable property to have custody of the movable property attached pursuant to paragraph (1), he/she may permit the delinquent taxpayer or the third party to use or profit from the movable property if he/she deems such activity does not interfere with the collection of local taxes.
 Article 50 (Collection of Claims on Securities)
(1) Where the head of a local government attaches securities, he/she may collect monetary claims related to such securities.
(2) Where the head of a local government collects monetary claims pursuant to paragraph (1), he/she shall be deemed to have collected the amount of delinquent local taxes of a delinquent taxpayer related to the attachment, within the amount collected.
SECTION 5 Garnishment
 Article 51 (Procedures for Garnishment)
(1) Where the head of a local government imposes a garnishment, he/she shall notify the debtor of the relevant claim (hereinafter referred to as "garnishee") of the purport thereof.
(2) Where the head of a local government gives notice under paragraph (1), he/she shall take the place of a creditor who is a delinquent taxpayer to the extent of the amount of delinquent local taxes.
(3) Where the head of a local government imposes a garnishment pursuant to paragraph (1), he/she shall notify the delinquent taxpayer of the garnishment.
 Article 52 (Validity of Garnishment)
Garnishment shall become valid when a garnishment is served on the garnishee.
 Article 53 (Scope of Garnishment)
Where the head of a local government takes a garnishment, he/she shall set the limit within the amount of delinquent local taxes: Provided, That if he/she deems it necessary where the garnishment to be taken exceeds the amount of delinquent local taxes, he/she may take the full amount of the garnishment.
 Article 54 (Attachment of Continuous Income)
Attaching pay, wages, salary, annual allowance, retirement allowance and other remuneration similar thereto shall have effect on the amount of money to be earned after the attachment thereof, up to the amount of delinquent local taxes.
SECTION 6 Attachment of Real Estate, etc.
 Article 55 (Procedures for Attachment of Real Estate, etc.)
(1) Where the head of a local government attaches real estate, a factory foundation, mining foundation, or ship, he/she shall entrust registering attachment to the competent registry along with the record of attachment. The foregoing shall also apply to registering alterations thereof.
(2) Where the head of a local government partitions or divides real estate, a factory foundation, or mining foundation to attach it, he/she shall entrust registering the partition or division thereof to the competent registry. The foregoing shall also apply to registering the merger or alteration thereof.
(3) Where the head of a local government attaches unregistered real estate, he/she shall entrust the registration of preservation to the competent registry along with a certified transcript of a land register, a certified transcript of a building register or a comprehensive real estate certificate.
(4) Where the head of a local government attaches real estate pursuant to paragraph (1) or (3), he/she shall notify a delinquent taxpayer of such attachment.
 Article 56 (Procedures for Attachment of Motor Vehicles, etc.)
(1) Where the head of a local government attaches a motor vehicle registered pursuant to the Motor Vehicle Management Act or construction equipment registered pursuant to the Construction Machinery Management Act (hereinafter referred to as "motor vehicle or construction equipment"), or aircraft or rotary-wing aircraft registered pursuant to the Aviation and Safety Act (hereinafter referred to as "aircraft"), he/she shall entrust registering attachment to the relevant agency. The foregoing shall also apply to registering the alteration thereof. <Amended by Act No. 15294, Dec. 26, 2017>
(2) Where the head of a local government attaches a motor vehicle or construction equipment pursuant to paragraph (1), he/she may require a delinquent taxpayer (including a third party who possesses the relevant motor vehicle or construction equipment) to deliver the relevant motor vehicle or construction equipment, and may possess it.
(3) Where the head of a local government attaches a motor vehicle, construction equipment or aircraft pursuant to paragraph (1), he/she shall notify a delinquent taxpayer of such attachment.
 Article 57 (Validity of Attachment of Real Estate, etc.)
(1) Attachment under Article 55 or 56 shall take effect when the record or registration of such attachment is completed.
(2) Attachment under paragraph (1) shall also become valid to the amount of delinquent local taxes of which statutory payment deadline under Article 71 (1) 3 of the Framework Act on Local Taxes has come before the ownership of the attached property is transferred.
 Article 58 (Giving Notice of Attachment to Mortgagee, etc.)
(1) Where the head of a local government attaches property on which the right to lease on a deposit basis, the right of pledge or mortgage has been established, he/she shall notify the relevant creditor of the attachment of such property.
(2) Where a creditor who has priority over local tax receives notification under paragraph (1) and intends to exercise priority, he/she shall report his/her intention to the head of a local government within ten days from the date he/she receives notification.
 Article 59 (Use of or Making Profits from Attached Real Estate, etc.)
(1) A delinquent taxpayer may use or profit from the attached real estate, factory foundation, mining foundation, ship, aircraft, motor vehicle or construction equipment: Provided, That where the head of a local government deems the attached property is likely to depreciate substantially, he/she may restrict the delinquent taxpayer from using or making profits from the attached property.
(2) In cases of a third party who has the right to use or profit from the attached real estate, factory foundation, mining foundation, ship, aircraft, motor vehicle or construction equipment, paragraph (1) shall apply mutatis mutandis.
(3) Where the head of a local government deems it necessary when he/she collects delinquent local taxes, he/she may require a delinquent taxpayer to temporarily moor a ship or temporarily delay or park an aircraft, motor vehicle or construction equipment: Provided, That he/she shall not require a delinquent taxpayer to temporarily moor a ship or temporarily delay or park an aircraft, which is ready for departure from a port or airport.
(4) Where the head of a local government requires a delinquent taxpayer to temporarily moor a ship or temporarily delay or park an aircraft, motor vehicle or construction equipment pursuant to paragraph (3), he/she shall take measures necessary for surveillance and preservation.
 Article 60 (Claim to Ownership by Third Party)
A third party who intends to claim ownership of the attached property and request it to be returned shall submit evidential documents verifying that the third party is the owner thereof by no later than five days prior to the sale thereof.
SECTION 7 Attachment of Intangible Property Rights, etc.
 Article 61 (Attachment of Intangible Property Rights, etc.)
(1) Where the head of a local government attaches a intangible property right, etc., he/she shall notify the person who has the relevant right of the attachment thereof.
(2) Where the head of a local government attaches the intangible property right, etc., he/she shall entrust a relevant government agency with recording or registering the attachment thereof on the matters requiring the record or registration of the transfer of such intangible property right, etc. The foregoing shall also apply to recording or registering the alteration thereof.
(3) Where the head of a local government attaches the intangible property right, etc., pursuant to paragraph (2), he/she shall notify a delinquent taxpayer of such attachment.
 Article 62 (Attachment of Rights to State or Public Property)
(1) Where a delinquent taxpayer has purchased state or public property, the head of a local government shall attach the right of the delinquent taxpayer to such state or public property with regard to the Government or a public organization even before the ownership thereof is transferred.
(2) Where the head of a local government attaches state or public property pursuant to paragraph (1), he/she shall notify a delinquent taxpayer of the attachment thereof.
(3) A person who purchases attached property under paragraph (1) due to the sale thereof shall inherit all rights and duties of a delinquent taxpayer to the Government or a public organization concerning such state or public property when he/she has fully paid the price thereof.
SECTION 8 Release from Attachment
 Article 63 (Requirements for Release from Attachment)
(1) In any of the following cases, the head of a local government shall immediately release property from attachment:
1. Where attachment becomes unnecessary upon delinquent local taxes being paid, appropriation for delinquent local taxes, suspension of public auction, revocation of the imposition of local taxes, or other reasons;
2. Where a third party's claim to ownership of the attached property is deemed well-grounded;
3. Where a third party filed a lawsuit concerning ownership against a delinquent taxpayer and obtains a favorable judgement, and proves the ownership of the attached property.
(2) In any of the following cases, the head of a local government may partially or fully release the attached property from attachment: Provided, That in cases falling under subparagraph 5, he/she shall immediately release the property from attachment:
1. Where the price of the attached property substantially exceeds the full amount of delinquent local taxes due to a change in the price of the property after the attachment thereof or other reasons;
2. Where part of the amount of delinquent local taxes related to attachment has been paid or appropriated;
3. Where the part of the imposition of local taxes is revoked;
4. Where a delinquent taxpayer provides other property which the head of the local government may attach and he/she attaches such property;
5. Where a delinquent taxpayer proves that the attached property is the property not subject to attachment pursuant to statutes, which is money paid by the State or a local government, such as benefits prescribed in the National Basic Living Security Act, disability allowance prescribed in the Act on Welfare of Persons with Disabilities, basic pension prescribed in the Basic Pension Act or welfare benefits prescribed in the Single-Parent Family Support Act.
 Article 64 (Release from Attachment)
(1) Where the head of a local government releases property from attachment, he/she shall notify the right holder to whom attachment of such property has been notified, a garnishee or third party of such fact.
(2) In cases falling under paragraph (1), the head of a local government shall entrust the relevant agency with recording or registering the release from attachment of property, along with a protocol of release from attachment.
(3) Where the head of a local government requires a third party to have custody of the attached property and releases the property from attachment, he/she shall notify the third party who has custody of the property of release from attachment, and return the attached property to the relevant delinquent taxpayer or a legitimate right holder. In such cases, where he/she has received a certificate of custody, he/she shall return the certificate of custody.
(4) In cases falling under paragraph (3), where the head of a local government deems it necessary, he/she may require a person who has custody of property to deliver the property to a delinquent taxpayer or legitimate right holder. In such cases, he/she shall notify the delinquent taxpayer or the legitimate right holder to take over the attached property from the person who has custody of the property.
(5) Where the head of a local government returns property which he/she has custody of, he/she shall receive a receipt: Provided, That he/she may require a delinquent taxpayer or a legitimate right holder to mention receipt of the property and sign and seal in a protocol of attachment, in lieu of a receipt.
 Article 65 (Exemption from Fees for Registration of Real Estate)
Where a local government files an application for registration of real estate to collect local taxes, it shall be exempted from a registration fee under Article 22 (3) of the Registration of Real Estate Act.
SECTION 9 Request for Delivery and Participation in Attachment
 Article 66 (Request for Delivery)
In cases falling under Article 22 (1) 1 through 4 or 6, the head of a local government shall request the relevant government agency, public organization, executing court, enforcement officer, compulsory manager, trustee in bankruptcy, or liquidator to deliver the amount of delinquent local taxes.
 Article 67 (Participation in Attachment)
(1) Where the property to be attached has already been attached by another agency, the head of a local government may participate in the attachment of the property by serving the agency that has attached the property (hereinafter referred to as “agency that has already attached property”) with a notice of participation in attachment in lieu of a request for delivery under Article 66.
(2) Where the head of a local government participates in the attachment of property pursuant to paragraph (1), he/she shall notify a delinquent taxpayer and a third party who has the right to the property of his/her participation in the attachment thereof.
(3) Where the property in the attachment in which the head of a local government intends to participate pursuant to paragraph (1) is required to be recorded or registered for changes to the right thereto, he/she shall entrust recording or registering participation in the attachment thereof to the relevant government agency.
 Article 68 (Validity, etc. of Participation in Attachment)
(1) Where an agency that has attached property releases the property from attachment after the head of a local government participated in the attachment of the property pursuant to Article 67, his/her participation in the attachment thereof (where at least two agencies have participated in the attachment of the property falling under Article 67 (3), referring to the agency which has recorded or registered the attachment thereof first among them, and where at least two agencies have participated in the attachment of other property, referring to the agency on which a notice of participation in attachment is served first among them) shall become valid, retrospective to the following:
1. Property other than property falling under Article 67 (3): The time a notice of participation in attachment is served on an agency that has attached the property;
2. Property falling under Article 67 (3): The time the record or registration of participation in the attachment thereof is completed.
(2) Where an agency that has attached property releases the property from attachment, it shall notify the head of a local government who participates in the attachment of the property of such fact, along with a list of property released from attachment.
(3) Where an agency that has already attached the property has possessed the property whose attachment is released, which is movables or securities, or has a third party to take custody of the property, it shall directly deliver such property to the head of a local government who participates in such attachment: Provided, That with regard to the property which the third party has custody of, delivery of a certificate of custody issued by the third party may take the place of the direct delivery of the property.
(4) Where an agency that has attached property does not sell such attached property for a long time, the head of a local government who participates in such attachment may notify such agency to sell the attached property.
(5) Where an agency that has already attached property, which has been notified to sell the attached property pursuant to paragraph (4), fails to engage in any of the following activities within three months from the date it is notified, the head of a local government who has notified such agency to sell the attached property may sell the attached property:
1. Sending a letter requesting the head of the local government to hold a public auction or enter into a private contract on its behalf pursuant to Articles 71 (5) and 72 (2);
2. Notifying a delinquent taxpayer, etc. of the fact that it intends to sell the attached property by private contract under Article 72;
3. Publicly announcing a public auction under Article 78 (2).
(6) Where the head of a local government who has notified an agency that has already attached property to sell the attached property intends to sell the attached property pursuant to paragraph (5), he/she shall notify the agency that has attached property of the details of his/her intention.
(7) An agency that has attached property, which has received notification under paragraph (6), shall deliver the attached property, such as movables or securities, which it possesses or requires a third party to store, to the head of a local government who has notified the agency that has already attached property to sell the attached property pursuant to paragraph (4). In such cases, paragraph (3) shall apply mutatis mutandis to the methods of delivery.
 Article 69 (Application Mutatis Mutandis to Release from Attachment)
Articles 63 through 65 shall apply mutatis mutandis to releasing property from attachment in which the head of a local government has participates.
 Article 70 (Cancelling Requests for Delivery)
(1) Where the obligation to pay an amount of delinquent local taxes ceases to exist, for which the head of a local government has made a request for delivery, due to payment, appropriation, revocation of the imposition, or other reasons, he/she shall cancel his/her request for delivery.
(2) A request for delivery referred to in paragraph (1) shall be cancelled by notifying an agency which has received a request for delivery, of the purport of the cancellation thereof.
SECTION 10 Sale of Attached Property
 Article 71 (Public Auction)
(1) The head of a local government shall sell movable property, securities, real estate, intangible property rights, etc. he/she has attached and articles (excluding a currency) he/she has received on behalf of delinquent taxpayers pursuant to Article 51 (2) at pubic auction, as prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), where the attached property is securities listed on the securities market under the Financial Investment Services and Capital Markets Act (hereinafter referred to as "securities market"), the head of a local government may directly sell such securities on the relevant market.
(3) Property attached pursuant to Article 33 (2) shall not be sold at public auction before the obligation to pay local taxes related to the attachment thereof is confirmed.
(4) Property attached due to delinquent local taxes on which procedures for filing an objection, making a request for examination, or a request for trial under the Framework Act on Local Taxes are pending or administrative litigation is pending shall not be sold at public auction before the decision on such objection or request is confirmed or the ruling on such litigation is finalized: Provided, That where the property falling under Article 72 (1) 2 may be sold at public auction even before the decision on such objection or request is confirmed or the ruling on such litigation is finalized.
(5) Where the head of a local government deems the direct sale of the attached property at public auction inappropriate because he/she needs expertise to sell the attached property at public auction or other special circumstances exist, he/she may require the Korea Asset Management Corporation incorporated under the Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial Companies and the Establishment of Korea Asset Management Corporation (hereinafter referred to as "Korea Asset Management Corporation") to sell the attached property at public auction on his/her behalf, and in such cases, the head of the local government is deemed to have sold the attached property at public auction.
(6) Where the Korea Asset Management Corporation sells the attached property at public auction on behalf of the head of a local government pursuant to paragraph (5), the "head of a local government" shall be construed as "Korea Asset Management Corporation"; "tax officials" shall be construed as "employees of the Korea Asset Management Corporation (including executives; hereinafter the same shall apply)"; "public official who conducts a public auction" shall be construed as "employee of the Korea Asset Management Corporation conducting a public auction on behalf of the head of a local government"; and "local government" shall be construed as "head office, branch office or local office of the Korea Asset Management Corporation,” respectively.
(7) Where the Korea Asset Management Corporation conducts a pubic auction on behalf of the head of a local government pursuant to paragraph (5), he/she may pay a commission to the Korea Asset Management Corporation, as prescribed by Presidential Decree.
(8) Where the Korea Asset Management Corporation conducts a pubic auction on behalf of the head of a local government pursuant to paragraph (5), employees of the Korea Asset Management Corporation referred to in paragraph (6) shall be deemed public officials for the purpose of imposing penal provisions under the Criminal Act or other Acts.
(9) Necessary matters concerning a public auction conducted by the Korea Asset Management Corporation on behalf of the head of a local government pursuant to paragraph (5) shall be prescribed by Presidential Decree.
 Article 71-2 (Vicarious Sale, etc. by Institutions Specialized in Sale)
(1) Where the attached property items are the things, for which it is impracticable to set the prices uniformly due to their artistic and historical values and it is inappropriate to directly sell due to the necessity of expertise for the sale (hereinafter referred to as “art works, etc.”), the head of a local government may, ex officio or at the request of a taxpayer, select an institution specialized in sale to vicariously sell art works, etc., from among institutions with expertise and experience in the sale of art works, etc.
(2) An institution specialized in sale selected under paragraph (1) (hereinafter referred to as “institution specialized in sale”) and its executive officers and employees shall not purchase any art works, etc., the sale of which is vicariously conducted, either in a direct or indirect manner, by such institution.
(3) Where an institution specialized in sale vicariously conducts sale pursuant to paragraph (1), the head of the relevant local government may pay fees as prescribed by Presidential Decree.
(4) Detailed matters necessary for the procedures for making a request by a taxpayer, selecting an institution specialized in sale, and selling art works, etc. under paragraph (1) shall be prescribed by Presidential Decree.
(5) Where an institution specialized in sale vicariously conducts sale pursuant to paragraph (1), its executive officers and employees shall be deemed public officials for the purposes of Articles 129 through 132 of the Criminal Act.
[This Article Newly Inserted by Act No. 15294, Dec. 26, 2017]
 Article 72 (Private Contract)
(1) Where attached property falls under any of the following cases, the attached property may be sold under private contract:
1. Where the proceeds from the sale of the attached property are unlikely to remain after appropriating the proceeds for expenses for disposition on default, unless the head of the local government sells the attached property by private contract;
2. Where attached property is likely to depreciate unless the attached property, which is liable to spoil, deteriorate or be diminished, is promptly sold;
3. Where the estimated price of the attached property is less than ten million won;
4. Where the attached property is restricted from possession or transaction by statutes;
5. Where the attached property is not sold even though at least five public auctions have been conducted in one year after the first public auction;
6. Where the sale of the attached property at public auction is inappropriate for public interest.
(2) Where necessary, the head of a local government may require the Korea Asset Management Corporation to enter into a private contract under paragraph (1) on his/her behalf, as prescribed by Presidential Decree. In such cases, the head of the local government shall be deemed to have executed the private contract, and Article 71 (6) through (9) shall apply mutatis mutandis to the private contract.
 Article 73 (Examination of Current Status of Property Subject to Sale at Public Auction)
(1) The head of a local government shall examine the present state of property subject to sale at public auction, occupancy, the amount of rent or security deposit and other current status to determine the estimated sale price pursuant to Article 74.
(2) A tax official may access a building, ask questions to a delinquent taxpayer or a third party who possesses the building, or request him/her to present documents to examine under paragraph (1).
(3) Where necessary to access a building pursuant to paragraph (1), a tax official may take necessary measures, such as opening a locked door.
 Article 74 (Determination of Estimated Sale Price)
(1) Where the head of a local government intends to sell attached property at pubic auction, he/she shall determine the estimated sale price thereof.
(2) Where it is difficult for the head of a local government to determine the estimated sale price, he/she may request an appraiser to appraise the attached property, as prescribed by Presidential Decree, and refer to the value thereof.
 Article 75 (Place of Public Auction)
A public auction shall be conducted at the government building of the competent local government or the government building of the local government where property to be sold at public auction is located: Provided, That where the head of the local government deems it necessary, he/she may conduct the public auction at another place.
 Article 76 (Security Deposit for Sale at Public Auction)
(1) Where the head of a local government deems it necessary in selling the attached property at public auction, he/she may receives a security deposit for sale at public auction.
(2) A security deposit for sale at public auction shall be at least 10/100 of the estimated sale price.
(3) Government bonds or municipal bonds, securities listed on the securities market or guarantee insurance policy issued by an insurance company under the Insurance Business Act may be used in lieu of a security deposit for sale at public auction. In such cases, requirements therefor shall be prescribed by Presidential Decree.
(4) Where a successful bidder or winning bidder fails to enter into a purchase contract, the head of a local government shall appropriate a security deposit for expenses for disposition on default, local taxes related to attachment or additional charges, and pay the remaining amount to a delinquent taxpayer.
 Article 77 (Limitation of Purchasers)
No delinquent taxpayer or tax official shall directly or indirectly purchase attached property.
 Article 78 (Methods and Public Announcement of Public Auction)
(1) A public auction shall be conducted through the method of bidding or auction (including methods using an information and communications network).
(2) Where the head of a local government intends to sell attached property at public auction, he/she shall publicly announce the following. In such cases, he/she may publicly announce matters concerning several public auctions, such as a public auction, repeated public auction of the same property, all at once:
1. Payment deadline of the purchase price;
2. Name, location, quantity, quality, estimated sale price of attached property to be sold at public auction, and other important matters;
3. Time and place for bidding or auction (in cases of bidding for a certain period, the period of bidding);
4. Time and place for opening bids;
5. Where a security deposit for sale at public auction is received, the amount of the security deposit;
6. Where attached property to be sold at public auction is a share of co-owned property, the fact that co-owners (excluding a delinquent taxpayer; hereinafter the same shall apply) have the preemption right;
7. Deadline for requesting distribution;
8. Claims that may be distributed if only distribution is requested by the deadline for requesting distribution;
9. Date determined for selling attached property;
10. Where there is the superficies, the right of lease on a deposit basis, the countervailing right of lease to, or provisional registration of property to be sold at public auction which does not cease to exist by sale, relevant facts;
11. Where a purchaser of property to be sold at public auction is required to hold a certain qualification, relevant facts;
12. Details and the period of provision of data under the subparagraphs of Article 82 (2);
13. Period and procedures for reporting purchase in the subordinate order under Article 90.
(3) A public announcement of public auction under paragraph (2) shall be posted at a local government office or other appropriate place: Provided, That the public announcement of public auction may be published in the Official Gazette, the official report or a daily newspaper as necessary.
(4) Where the head of a local government makes a public announcement of public auction under paragraph (3), he/she shall notify the details of the public announcement thereof through the information and communications network along with posting or publishing the same.
(5) The deadline for requesting distribution referred to in paragraph (2) 7 (hereinafter referred to as "deadline for requesting distribution") shall be determined based upon the period required to follow procedures, and shall be determined before the date of the first bidding: Provided, That where procedures for public auction are not followed for reasons prescribed by Presidential Decree, such as a delay in or omission of the record or registration of the public auction, the head of a local government may postpone the deadline for requesting distribution after the date of the first bidding.
(6) The date the sale is determined under paragraph (2) 9 shall be determined within three days from the bid opening date referred to in paragraph (2) 4.
(7) Where the head of a local government sells property at public auction through the method of auction, he/she may select an auctioneer and require him/her to manage the auction.
(8) Matters necessary to make a public announcement under paragraph (2) shall be prescribed by Presidential Decree.
 Article 79 (Entrustment of Record or Registration of Attached Property of Which Public Auction Is Publicly Announced)
Where attached property, public auction of which is publicly announced pursuant to Article 78 requires the record or registration thereof, the head of a local government shall entrust the entry of the fact in the record or the register to the relevant government office immediately after he/she publicly announces public auction.
 Article 80 (Notification of Public Auction)
Where the head of a local government publicly announces public auction under Article 78 (2), he/she shall notify the following persons of the details thereof:
1. A delinquent taxpayer;
2. An owner of collateral on tax payment;
3. Where property to be sold at public auction is a share of co-owned property, co-owners as of the date before the record or registration of a public announcement of public auction is made;
4. A person who has the right of lease on a deposit basis, the right of pledge, mortgage or other rights to property to be sold at public auction as of the date before the record or registration of the attached property of which public auction is publicly announced.
 Article 81 (Request for Distribution, etc.)
(1) Where a person who holds the following claims not recorded or registered before recording or registering attached property of which public auction is publicly announced under Article 79 intends to obtain distribution pursuant to Article 99 (1), he/she shall request the head of a local government to permit distribution by the deadline for requesting distribution:
1. Amount of a delinquent local taxes related to the attached property;
2. Amount of delinquent local taxes, national taxes or utility bills related the request for delivery;
3. Claims secured by the right of lease on a deposit basis, the right of pledge or mortgage related to the attached property;
4. Claims for return of a security deposit for lease entitled to preferential repayment pursuant to the Housing Lease Protection Act or the Commercial Building Lease Protection Act;
5. Wages, retirement allowance, compensation for accident and other claims due to labor relations that have the right to preferential repayment pursuant to the Labor Standards Act or the Act on the Guarantee of Workers' Retirement Benefits;
6. Provisional garnishments related to the attached property;
7. Claims in accordance with the original that has executive force.
(2) Where a person who holds a lease on a deposit basis that does not cease to exist by sale intends to obtain distribution, he/she shall request distribution by the deadline for requesting distribution.
(3) Where the burden to be borne by a purchaser varies in accordance with the request for distribution under paragraphs (1) and (2), a person who has requested distribution shall not withdraw his/her request after the deadline for requesting distribution.
(4) The head of a local government shall notify persons who have a claim (hereinafter referred to as "creditor subject to reporting the claim") under the subparagraphs of paragraph (1) recorded or registered before recording or registering attached property of which public auction is publicly announced to report whether he/she holds the claim or not, the cause and the amount of the claim (including the principal, interest, expenses and other accompanying claims) to the head of the local government by the deadline for requesting distribution.
(5) Where a creditor subject to reporting the claim fails to file a report under paragraph (4), the head of a local government shall calculate the amount of the claim of the relevant creditor subject to reporting the claim in accordance with verifiable data in the record of public auction conducted, such as a certificate of details of registration. In such cases, the relevant creditor subject to reporting the claim shall not add the amount of the claim.
(6) The head of a local government shall notify the persons falling under paragraphs (1) and (2) and the heads of the following agencies that they should request distribution by the deadline for requesting distribution: <Amended by Act No. 14839, Jul. 26, 2017>
1. The Ministry of the Interior and Safety;
2. The National Tax Service;
3. The Korea Customs Service;
4. The National Health Insurance Service established under the National Health Insurance Act;
5. The National Pension Service established under the National Pension Act;
6. The Korea Workers' Compensation and Welfare Service established under the Industrial Accident Compensation Insurance Act.
(7) Where the head of a local government includes matters concerning notification to file a report on claims under paragraph (4) or guidance on the request for distribution under paragraph (6) when he/she notifies a public auction pursuant to Article 80, he/she shall be deemed to have given notification or guidance under the relevant paragraphs.
(8) The head of a local government may give notification under paragraph (6) through the local tax information and communications network.
 Article 82 (Preparation, Keeping, etc. of Detailed Statement of Property to Be Sold at Public Auction)
(1) The head of a local government shall prepare a detailed statement of property sold at public auction which includes the following matters, based on the examination of the current status under Article 73:
1. Name, location, quantity, quality and estimated sale price of property sold at public auction, and other important matters;
2. An occupant and the title of occupancy of property sold at public auction, the period during which the person may occupy property sold at public auction, and a statement of the relevant person concerning rent or a security deposit;
3. Current status of the request for distribution under Article 81 (1) and (2) and the current status of the reporting of claims under paragraph (4) of the aforesaid Article;
4. Rights registered with regard to property sold at public auction or provisional disposition, not invalidated by the sale thereof;
5. An outline of superficies deemed established by the sale of property.
(2) The head of a local government shall allow persons who intends to participate in bidding to read the following data by keeping such data at the local government or posting such data using the information and communications network, etc. from seven days before the commencement of bidding to the closing of bidding:
1. A detailed statement of property sold at public auction under paragraph (1);
2. Data concerning the value appraised by an appraiser pursuant to Article 74 (2);
3. Other data necessary to determine the bid price.
 Article 83 (Cancelling Public Auction and Public Announcement of Cancellation thereof)
(1) In any of the following cases, the head of a local government may cancel a public auction:
1. Where he/she releases the relevant property from attachment;
2. Where he/she defers the collection of delinquent local taxes pursuant to Article 105;
3. Where a court decides to suspend the collection of delinquent local taxes pursuant to Article 23 of the Administrative Litigation Act;
4. Other cases prescribed by Presidential Decree where it is impracticable for him/her to conduct a public auction.
(2) Where the head of a local government deems it necessary to continue a public auction because a reason for the cancellation of the public auction ceases to exist after the public auction was cancelled pursuant to paragraph (1), he/she may conduct a public auction again pursuant to Article 91.
(3) Where the head of a local government cancels a public auction before the date determined for selling attached property under Article 78 (2) 9 (hereinafter referred to as "date determined for selling attached property"), he/she shall publicly announce the cancellation of the public auction.
 Article 84 (Period of Public Announcement of Public Auction)
A public auction shall be conducted after ten days have elapsed from the date the public auction was publicly announced: Provided, That where it costs considerable money to have custody of the property or the value of the property is likely to decrease appreciably, the head of a local government may conduct the public auction even before ten days have elapsed.
 Article 85 (Suspending Public Auctions)
(1) A public official who conducts a public auction shall suspend the public auction where a delinquent taxpayer or a third party fully pays the amount of delinquent local taxes before the date the sale of attached property is determined. In such cases, the public official shall notify persons who intend to purchase the attached property of the suspension of the public auction either orally or through other methods, in lieu of a public announcement under Article 83.
(2) Where the head of a local government sells several pieces of property at public auction all at once, in which case he/she may appropriate the proceeds from the sale of several pieces of property at public auction for the full amount of delinquent local taxes, he/she shall suspend the sale of the remaining property at public auction.
 Article 86 (Cancellation of Record or Registration of Attached Property of Which Public Auction Is Publicly Announced)
Where the head of a local government falls under any of the following, he/she shall entrust the cancellation of recording or registering the attached property of which public auction is publicly announced under Article 79 to the relevant government agency:
1. Where he/she publicly announces the cancellation of a public auction pursuant to Article 83;
2. Where he/she suspends a public auction pursuant to Article 85;
3. Where he/she cancels his/her determination of the sale of attached property pursuant to Article 95.
 Article 87 (Restrictions on Participation in Public Auction)
The head of a local government may restrict a person who is deemed to have performed any of the following activities from having access to a place where a public auction is held or participating in bidding for two years after he/she performed such activity. The foregoing shall also apply to a person who uses a person in whose case two years have not elapsed after he/she performed such activity as an employee or other worker, and a person who designates such person as his/her representative for bidding:
1. Hindering the participation of a person who has intended to submit a bid in a public auction, determining the highest bidder, or paying the purchase price by a purchaser;
2. Collusion with the intention to unlawfully lower the price at the public auction;
3. Filing an application for purchase in a false name.
 Article 88 (Bidding and Opening of Bids)
(1) A person who intends to make a bid shall submit his/her domicile or place of residence, name, the name of property he/she intends to purchase, bid price, security deposit to participate in the pubic auction, and other necessary matters to a public official who conducts the public auction, before bids are opened.
(2) A public official who conducts the public auction shall open bids, announce each bid price submitted, and record each bid price in the bidding log.
(3) The highest bidder whose price exceeds the estimated sale price shall be determined as a successful bidder.
(4) Where at least two persons bid at a successful price, a successful bidder shall be determined immediately by drawing lots.
(5) In cases falling under paragraph (4), where a person fails to attend the public auction or to draw lots among the relevant bidders, the public official who conducts the public auction may require a public official who does not have relationship with affairs concerning bidding to draw lots on behalf of the person who is absent.
(6) Where no person makes a bid above the estimated sale price, the public official who conducts the public auction may immediately reinvite bids at the same place.
 Article 89 (Preemption Right of Co-Owners)
(1) Where property sold at public auction is a share of co-owned property, a co-owner may furnish a security deposit to participate in the public auction under Article 76 and report that he/she will purchase the property sold at public auction preferentially at the same price as the highest bid price exceeding the estimated sale price before the date the sale of attached property is determined.
(2) In cases falling under paragraph (1), notwithstanding Article 88 (3), the head of a local government shall make a determination that he/she sells the property to such co-owner.
(3) Where several co-owners report the preferential purchase of the property and complete procedures under paragraph (2), the head of a local government shall allow them to purchase the property sold at public auction in proportion to the co-owned shares, unless otherwise specifically agreed.
(4) Where a purchaser fails to pay the purchase price after the determination of the sale of the property under paragraph (2), the head of a local government may redetermine the sale thereof to the highest bidder higher than the estimated sale price.
 Article 90 (Reporting on Purchase in Subordinate Order)
(1) After a successful bidder is determined pursuant to Article 88, bidders other than such successful bidder may provide a security deposit to participate in public auction and report that he/she will purchase the property sold at public auction at the price exceeding the price calculated by subtracting the security deposit to participate in public auction from the highest bid price (hereinafter referred to as "reporting on purchase in subordinate order") where the determination of the sale of attached property is cancelled for a reason falling under Article 95 (1) 2 before the date determined for selling attached property is determined.
(2) Where at least two persons report on purchase in subordinate order pursuant to paragraph (1) (hereinafter referred to as "person who reports the purchase in subordinate order"), the head of a local government shall determine a person who reports on purchase at the highest price as a person who reports the purchase in subordinate order: Provided, That where at least two persons report the purchase at the highest price, the head of the local government shall determine the person who reports the purchase in subordinate order by drawing lots.
(3) Where reporting purchase in subordinate order is made, the head of a local government shall determine whether he/she will determine a person who reports the purchase in subordinate order as a purchaser and determine the sale of attached property, within three days from the date he/she cancels the determination of the sale of attached property for a reason falling under Article 95 (1) 2: Provided, That where any of the following reasons exists, the head of the local government shall not determine that he/she will sell the attached property to the person who reports the purchase in subordinate order:
1. In cases falling under Article 92 (1) 1, 3 or 4;
2. Where the person who reports the purchase in subordinate order proves to be a person restricted from participating in public auction pursuant to Article 87.
 Article 91 (Repeated Public Auction)
(1) Where no person desires to purchase property even though the public auction is conducted or bid prices are less than the estimated sale price, the property shall be offered for public auction again.
(2) Where the purchaser of the property sold at public auction fails to pay the purchase price by the deadline for the payment thereof, the sale thereof shall be cancelled and the property shall be offered for public auction again.
(3) The head of a local government shall offer the property for public auction by gradually reducing the amount equivalent to 10/100 of the estimated sale price whenever he/she offers the property for public auction, and where the property is not sold even though he/she puts the property up for public auction by gradually reducing the amount of the property to the amount equivalent to 50/100 of the estimated sale price, he/she may offer the property for public auction again after determining the new estimated sale price pursuant to Article 74: Provided, That the foregoing shall not apply where he/she immediately offers the property for public auction again pursuant to Article 88 (6).
(4) Articles 74 through 78 and 80 through 90 shall apply mutatis mutandis to the repeated public auction under paragraphs (1) and (2): Provided, That notwithstanding Article 84, the head of a local government may reduce the period of public announcement of public auction by up to five days.
 Article 92 (Determination of Sale and Deadline, etc. for Payment of Purchase Price)
(1) Where the head of a local government determines a successful bidder pursuant to Article 88, he/she shall designate the successful bidder as the purchaser and determine the sale of attached property on the date determined for selling attached property unless the following reasons exist:
1. Where there is a ground for suspending public auction under Article 85 before the sale of attached property is determined;
2. Where a successful bidder proves to be a person restricted from participating in public auction pursuant to Article 87;
3. Where co-owners report the preferential purchase pursuant to Article 89;
4. Where the head of a local government deems that other important matters exist that do not allow him/her to determine the sale of attached property.
(2) The determination of the sale of attached property shall become valid at the time the head of a local government determines the sale thereof on the date determined for selling attached property.
(3) Where the head of a local government determines the sale of attached property, he/she shall issue a notice of determination of the sale thereof with a fixed payment deadline for the purchase price to the purchaser: Provided, That where he/she requires the purchaser to immediately pay the purchase price of the property which does not require the record or registration for the transfer of the right, he/she may orally notify the purchaser to pay the purchase price.
(4) The payment deadline under paragraph (3) shall be within seven days from the date the head of a local government determines the sale of attached property: Provided, That where he/she deems it necessary, he/she may extend the deadline for the payment thereof to the extent of 30 days.
 Article 93 (Demand for Payment of Purchase Price)
Where the purchaser fails to pay the purchase price by the specified deadline, the head of a local government shall give notice demanding the payment thereof by restipulating the deadline.
 Article 94 (Validity of Payment of Purchase Price)
(1) The purchaser shall acquire the property sold at the time he/she pays the purchase price.
(2) Where the head of a local government receives the purchase price, he/she shall be deemed to have collected the amount of delinquent local taxes as much as the purchase price from a delinquent taxpayer.
 Article 95 (Revocation of Determination of Sale)
(1) In any of the following cases, the head of a local government shall revoke the determination of the sale of attached property, and notify the purchaser of the revocation of the determination thereof:
1. Where a delinquent taxpayer pays the amount of delinquent local taxes related to the attachment of the property after obtaining consent from the purchaser and files an application to revoke the determination of the sale of attached property before the purchaser pays the purchase price;
2. Where the purchaser fails to pay the purchase price by the specified deadline even though the head of the local government has given notice demanding the payment of the purchase price pursuant to Article 93.
(2) Where the head of a local government revokes the determination of the sale of the attached property because a delinquent taxpayer falls under paragraph (1) 1, he/she shall return the relevant security deposit for public auction to the purchaser; and where he/she revokes the determination of the sale of the attached property because the purchaser falls under paragraph (1) 2, he/she shall appropriate security deposit for public auction in order of expenses incurred in collecting delinquent local taxes, local taxes related to the attachment of the property and additional charges, and pay the remainder to the delinquent taxpayer.
 Article 96 (Procedures for Transfer of Rights to Property Sold)
Where a delinquent taxpayer fails to follow procedures for the transfer of rights to property sold, the head of a local government shall follow such procedures on behalf of the delinquent taxpayer, as prescribed by Presidential Decree: Provided, That where Article 71 (5) or 72 (2) is applied, the Korea Asset Management Corporation may take the procedures on behalf of the head of the local government. In such cases, the head of the local government shall be deemed to have followed the procedures.
SECTION 11 Liquidation
 Article 97 (Scope of Distributed Money)
(1) The head of a local government shall distribute the following money pursuant to Article 99: Provided, That where Article 71 (5) or 72 (2) is applied, the Korea Asset Management Corporation may distribute the money on his/her behalf. In such cases, he/she shall be deemed to have distributed the money:
1. Attached money;
2. Money he/she has received from a delinquent taxpayer or a garnishee upon attaching claims, securities, intangible property rights, etc.;
3. Purchaser price of the attached property and interest on the deposit of the purchase price;
4. Money he/she has received in accordance with a request for delivery.
(2) Article 71 (8) shall apply mutatis mutandis where the Korea Asset Management Corporation distributes the money on behalf of the head of a local government pursuant to the proviso to paragraph (1).
 Article 98 (Designation of Date of Distribution)
(1) Where the head of a local government intends to distribute money under Article 97 (1) 2 and 3, he/she shall distribute the money upon designating the date of distribution within 30 days from the date he/she receives the relevant money from a delinquent taxpayer, a garnishee or a purchaser: Provided, That where it is impracticable for him/her to prepare a statement of distribution within 30 days, he/she may extend the date of distribution by up to 30 days.
(2) Where the head of a local government designates the date of distribution under paragraph (1), he/she shall notify a delinquent taxpayer, a creditor subject to reporting claims and a creditor who has requested the distribution of the money (hereinafter referred to as "delinquent taxpayer, etc.") of the date of distribution.
(3) Notwithstanding paragraph (2), where a delinquent taxpayer, etc. stays in a foreign country or his/her whereabouts is unknown, the head of a local government may choose not to notify him/her of the date of distribution.
 Article 99 (Methods of Distribution)
(1) Money under Article 97 (1) 2 and 3 shall be apportioned to the following delinquent local taxes and claims: Provided, That in cases of claims the distribution of which should be requested by the deadline for requesting distribution pursuant to Article 81 (1) and (2), the money shall be apportioned only to the claims requested to be distributed:
1. Amount of delinquent local taxes related to the attached property;
2. Amount of delinquent local taxes, national taxes or utility bills requested to be delivered;
3. Claims secured by the right of lease on a deposit basis, the right or pledge or mortgage related to the attached property;
4. Claims for the return of a security deposit for lease which has the priority right to demand repayment pursuant to the Housing Lease Protection Act or the Commercial Building Lease Protection Act;
5. Wages, retirement allowance, compensation for accident and other claims due to labor relations which have the priority right to demand repayment pursuant to the Labor Standards Act or the Act on the Guarantee of Workers' Retirement Benefits;
6. Provisionally attached claims related to the attached property;
7. Claims by the original which has executory power.
(2) The head of a local government shall appropriate the money under Article 97 (1) 1 and 4 for the amount of delinquent local taxes related to the attachment of property or a request for delivery.
(3) Where the remainder of money exists after the head of a local government distributes or appropriates the money pursuant to paragraphs (1) and (2), he/she shall pay the remainder of money to a delinquent taxpayer.
(4) Where the proceeds from the sale of attached property are inadequate to cover the total amount of delinquent local taxes and claims under the subparagraphs of paragraph (1), the head of a local government shall distribute the money by specifying the order of distribution and the amount to be distributed pursuant to the Civil Act or other statutes.
(5) Where the head of a local government distributes money to or appropriates money for the amount of delinquent local taxes preferentially due to an error in the order of distribution, unlawful request for delivery or similar reasons when he/she distributes under paragraph (1) or appropriations under paragraph (2) even though there are claims that take precedence over local taxes, he/she shall pay the money distributed or appropriated to creditors who take precedence over local taxes in the same manner as local taxes are refunded.
 Article 100 (Distribution of Proceeds from Sale of State or Public Property)
The order for distributing the proceeds from the sale of rights to state or public property attached pursuant to Article 62 (1) shall be as follows:
1. Payment of the amount which a delinquent taxpayer has not paid yet among the purchase price of state or public property;
2. Appropriation for the amount of delinquent local taxes;
3. Payment of the remaining money to a delinquent taxpayer after paying the amount pursuant to subparagraph 1 or appropriating for the amount of delinquent local taxes pursuant to subparagraph 2.
 Article 101 (Preparation of Statement of Distribution)
(1) Where the head of a local government distributes money pursuant to Article 97, he/she shall prepare the original plan of a statement of distribution by seven days before the period for distribution.
(2) A delinquent taxpayer, etc. may request the head of a local government to allow him/her to peruse or copy documents which provide the basis for the calculation of the amount distributed, such as a request for delivery, appraisal report, report on claims, request for distribution, and the original plan of a statement of distribution.
(3) The head of a local government upon receipt of a request for perusal and copy of documents pursuant to paragraph (2) shall provide such documents so that the delinquent taxpayer, etc. may peruse and copy the documents.
 Article 102 (Objection to Statement of Distribution)
(1) A delinquent taxpayer, etc. who attends on the date of distribution may raise an objection to claims of other creditors or the order of claims mentioned in the original plan of a statement of distribution under Article 101 (1), to the extent related to his/her claims until the date of distribution ends.
(2) Notwithstanding paragraph (1), even if a delinquent taxpayer fails to attend on the date of distribution, he/she may raise an objection in writing from the time the original plan of a statement of distribution is prepared until the date of distribution ends.
(3) Where no objection under paragraphs (1) and (2) is raised or the head of a local government deems the details of an objection groundless, he/she shall immediately confirm the statement of distribution as stated in the original plan thereof.
(4) Where the head of a local government deems the details of an objection under paragraphs (1) and (2) legitimate, or other delinquent taxpayers, etc. consent to the original plan of the statement of distribution, he/she shall modify the original plan of the statement of distribution and confirm the statement of distribution modified.
 Article 103 (Depositing Distributed Money)
(1) The head of a local government shall deposit the money not paid to creditors or delinquent taxpayers out of the distributed money in a treasury designated pursuant to Article 38 of the Local Accounting Act.
(2) Where the head of a local government deposits the money pursuant to paragraph (1), he/she shall notify creditors or delinquent taxpayers thereof.
SECTION 12 Suspension or Deferment of Collection of Delinquent Local Taxes
 Article 104 (Suspending Collection of Delinquent Local Taxes and Public Announcement of thereof)
(1) Where the estimated value of the total assets which are the object of disposition on default is not expected to be left over after having been appropriated for expenses for disposition on default, the disposition on default shall be suspended.
(2) Where property which is the object of disposition on default is property pledged as collateral for a claim under Article 71 (1) 3 of the Framework Act on Local Taxes, in which case the estimated value of the property is not expected to remain after having been appropriated for expenses for disposition on default and the amount of the relevant claim, the head of a local government shall suspend the collection of delinquent local taxes: Provided, That where the head of a local government requests delivery under Article 66 for, or participates in the attachment of the property which is subject to disposition on default, he/she may choose not to suspend the collection of delinquent local taxes.
(3) Where the head of a local government intends to suspend the collection of delinquent local taxes pursuant to paragraph (1) or (2), he/she shall publicly announce the suspension thereof for one month, following deliberation by the local tax deliberative committee, as prescribed by Presidential Decree.
(4) Where a delinquent taxpayer (where the delinquent taxpayer and the owner of property which is subject to disposition on default are not the same person, including the owner thereof) has a reason for the suspension of the collection of delinquent local taxes under paragraph (1) or (2), he/she may request the head of a local government to suspend the collection of delinquent local taxes.
 Article 105 (Deferment of Collecting Delinquent Local Taxes)
(1) Where a delinquent taxpayer falls under any of the following cases, the head of a local government may defer the attachment of property or the sale of attached property to collect the amount of delinquent local taxes, as prescribed by Presidential Decree:
1. Where the delinquent taxpayer is deemed an honest taxpayer under the standards prescribed by municipal ordinance of the local government;
2. Where the head of a local government deems that he/she may collect the amount of delinquent local taxes because the delinquent taxpayer becomes able to properly operate his/her business if the head of the local government defers the attachment of property or the sale of the attached property.
(2) Where the head of a local government deems it necessary when he/she defers the attachment of property or the sale of the attached property pursuant to paragraph (1), he/she may release attached property from attachment.
(3) Where the head of a local government defers the attachment of property pursuant to paragraph (1) or releases the attached property from attachment pursuant to paragraph (2), he/she may request a delinquent taxpayer to pledge collateral for the payment of local taxes equivalent thereto.
(4) Necessary matters concerning procedures for filing an application for, approval, notification, etc. of deferment under paragraph (1) shall be prescribed by Presidential Decree.
(5) Article 29 shall apply mutatis mutandis to the revocation of the deferment of measures to collect delinquent local taxes and the collection of the amount of delinquent local taxes in lump sum.
 Article 106 (Dispositions of Deficits)
(1) Where a taxpayer has any of the following grounds, the head of a local government may write off delinquent local taxes:
1. Where the distributed amount appropriated for the amount of delinquent local taxes after the completion of disposition on default is less than the amount of such delinquent local taxes;
2. Where the head of a local government suspends the collection of delinquent local taxes;
3. Where extinctive prescription of the right to collect local taxes is completed;
4. Where the head of a local government deems that it is impracticable for him/her to collect delinquent local taxes for reasons prescribed by Presidential Decree, such as where the whereabouts of a delinquent taxpayer is unknown.
(2) Where the head of a local government finds other pieces of property which he/she may attach after he/she has written off delinquent local taxes pursuant to paragraph (1), he/she shall immediately revoke the write-off and collect such delinquent local taxes: Provided, That the foregoing shall not apply to cases falling under paragraph (1) 3.
 Article 107 (Application Mutatis Mutandis of National Tax Collection Act to Disposition on Default)
Except as otherwise expressly prescribed by the Framework Act on Local Taxes, this Act or local tax-related Acts, the examples of dispositions on default of national taxes shall apply mutatis mutandis to a disposition on default of the money collectible by a local government.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation: Provided, That Article 23 (2) shall enter into force on June 1, 2017, and Article 65 shall enter into force on January 1, 2018.
Article 2 (Applicability to Public Announcement of Suspension of Collection of Delinquent Local Taxes)
Article 104 (3) shall begin to apply from the first case where the head of a local government intends to suspend the collection of delinquent local taxes, after this Act enters into force.
Article 3 (General Transitional Measures)
(1) The former Framework Act on Local Taxes shall apply to collecting money collectible by a local government, which the local government has imposed or should impose pursuant to the former Framework Act on Local Taxes or local tax-related Acts, before this Act enters into force.
(2) Any act performed regarding the head, etc. of a local government and any act performed by the head, etc. of a local government pursuant to the former Framework Act on Local Taxes as at the time this Act enters into force in relation to collecting money collectible by the local government shall be deemed an act performed to the head, etc. of a local government and an act performed by the head, etc. of a local government pursuant to this Act, respectively.
Article 4 Omitted.
Article 5 (Relationship with other Statutes)
Where the former Framework Act on Local Taxes or the provision thereof is cited by other statutes (including municipal ordinances) as at the time this Act enters into force, in which case this Act contains provision(s) corresponding thereto, this Act or the relevant provision(s) of this Act shall be deemed cited, respectively.
ADDENDA <Act No. 14524, Jan. 4, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That Article 4 of the Addenda shall enter into force on March 28, 2017, . . . <Omitted> . . . . .
Articles 2 through 4 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended by Article 5 of Addenda, the amendments to the Acts, which were promulgated before this Act enters into force but whose enforcement dates have not arrived yet, shall enter into force on the enforcement dates of the respective Acts.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15294, Dec. 26, 2017>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 8 (1) shall enter into force six months after the date of their promulgation, and the amended provisions of Article 71-2 shall enter into force three months after the date of their promulgation.