Confirmation hearing for Commissioner of the National Tax Service, analysis of key policies

What are we watching as the hearing takes place

On the morning of July 15, 2025, the National Assembly's Planning and Finance Committee is holding a confirmation hearing for Im Kwang-hyun, the candidate for Commissioner of the National Tax Service, focusing on the candidate's qualifications and policy proposals. The National Tax Service is a key institution in tax administration, and its head plays an important role in realizing tax justice and securing stable revenue. This hearing is not just a simple examination of qualifications it is a significant opportunity to demonstrate how to achieve tax fairness and administrative trust that society demands in front of the public. Candidate Im Kwang-hyun has a background as a tax official and has experience in both the practical and policy aspects of tax administration. He has previously participated in formulating tax policies as a former member of the National Assembly, and after his retirement, he established a tax firm, gaining private sector experience as well. This background provides him with strengths in administrative capability and policy insight, but some opposition lawmakers have raised concerns about the issues of preferential treatment for former officials and political neutrality during this process. However, many evaluations suggest that this is more of a character attack within a political context than raising institutional shortcomings. The true focal point of this hearing lies beyond these confrontations, in how much the policy direction proposed by the candidate can realistically contribute to realizing tax justice.

The main policy direction of candidate Lim Gwang-hyeon

Candidate Lim has expressed his position to shift the paradigm of tax policy focusing on the modernization of tax administration. The key elements include strengthening technology-based tax infrastructure, precise responses to evasion allegations, and introducing a flexible collection system considering socially vulnerable groups. Below are specific descriptions of the main policy contents by item: - Establishment of an AI-based tax evasion prediction system - Strict response to tax evasion using private equity funds and virtual assets - Response to tax evasion by high-income individual corporations such as celebrities and YouTubers - Flexible response to livelihood-related delinquents - Position on restructuring the tax system, including inheritance tax and income tax

Building an AI-based 'Tax Evasion Prediction System'

Candidate Lim announced that the National Tax Service will develop a system by the end of 2025 that uses AI algorithms to learn from the case data of tax audits accumulated over the years and identify taxpayers with a high likelihood of tax evasion. This system will operate by real-time analysis of the transaction patterns of high-income individuals, asset holders, and high-risk business operators, issuing early warnings when signs of tax evasion are detected. The aim is to move away from the traditional reliance on the intuition and experience of investigators, transitioning to a tax administration based on quantitative and scientific judgment. This system is expected to be particularly effective in proactively detecting complex forms of tax evasion, such as unlisted stock transactions, corporate fund misappropriation, and virtual asset concealment. As a safeguard to ensure fairness while implementing this technology, it is planned to operate a verification committee composed of external experts and to enhance the audit system.

Strict response to tax evasion using private equity funds and virtual assets

Candidate Lim has recently pointed out that there is an increasing number of sophisticated tax evasion cases that exploit private equity funds and virtual assets, expressing a strong commitment to robust sanctions against these practices. He mentioned that various methods of tax evasion through private equity funds have been identified, including bypassing governance structures, disguising capital transactions, and avoiding taxation through profit distribution. In this regard, the National Tax Service is formalizing a cooperation system with related agencies, such as the Financial Supervisory Service and the Fair Trade Commission, and is also establishing a continuous monitoring system for high-risk financial products like collective investment securities and convertible bonds. Notably, they plan to enhance the identification of beneficial owners within private equity fund structures and tracking of offshore accounts in conjunction with AI systems, thereby improving the effectiveness of tax audits.

Response to tax evasion by high-income individual corporations such as celebrities and YouTubers

Candidate Lim pointed out that some high-income earners habitually evade taxes by incorporating income to reduce tax rates and paying salaries and dividends to family members through loopholes. In response, he stated that they would analyze discrepancies between corporate accounts and personal spending patterns, and immediately initiate tax investigations into recurring abnormal payment structures. He also announced plans to reduce evasion blind spots by implementing pre-tax guidance, risk warning systems, and expanding irregular audits for high-income YouTubers, entertainers, and creators active in social media and broadcasting industries.

Flexible response to livelihood-type delinquents

The candidate expressed a commitment to pursuing tax equity while avoiding excessive pressure on taxpayers struggling to make ends meet. Candidate Lim stated, 'Applying the same collection methods and seizure measures to all delinquent taxpayers contradicts tax justice,' and indicated plans to introduce a flexible response system for economically vulnerable delinquents, including the implementation of a suspension of seizure and sale, expansion of exemption criteria for tax guarantees, and encouragement of installment payments. On the other hand, stronger punitive measures are being considered for willful and repeatedly malicious delinquents, and the expansion of the disclosure scope when detecting hidden assets of delinquents is also being considered.

Position on the restructuring of the tax system, including inheritance tax and income tax.

Candidate Lim assessed the discussion on transitioning the inheritance tax system from the current estate tax method to the beneficiary-based taxation method (inheritance acquisition tax) by stating, "It is worth considering in the medium to long term," while emphasizing the need for an approach that balances tax equity and administrative efficiency. Additionally, regarding income tax, he expressed general agreement with restructuring discussions such as "family unit taxation," but maintained that prerequisite conditions must first be met, including the improvement of the computer system, enhancements to the method of income separation calculation, and securing the budget.

Trustworthiness and Feasibility of Policy Intent Revealed in Hearing Statements

The policy vision of candidate Lim revealed through the hearing statements is characterized by its specificity and strategic consistency, rather than being merely declarative. The introduction of AI-based systems has clearly outlined actual timelines and functional configurations, and it can be confirmed that the collaborative framework with financial institutions and relevant ministries is being practically organized. In particular, the response measures for private equity funds and virtual assets require information access rights and technological investments that exceed the current capacity of the National Tax Service, and candidate Lim has also mentioned plans for long-term budget input and personnel reallocation in this regard. This vision reflects a tangible willingness to establish a technical and institutional foundation for realizing tax justice. In particular, the three main strategies of 'accurate taxpayer identification', 'customized investigation methods', and 'equitable collection policies' are assessed as a rational approach to securing public trust and enhancing tax compliance.

The qualification of the head of tax administration, a matter of trust that goes beyond verification

The Commissioner of the National Tax Service is not just an administrative leader, but occupies a pivotal position connecting tax trust between the people and the government. The environment in which citizens can voluntarily pay taxes does not stem from compulsory tax audits or punishments, but from the trust that taxes are imposed fairly. Candidate Lim Gwang-hyun is a figure who has experienced tax administration, legislative policy, and private sector practice, possessing a background that is different from previous commissioners of the National Tax Service. This represents both a challenge and an opportunity. Controversies regarding political bias and past records may inevitably arise during the hearing process, but true verification depends on whether his policies are in the interest of the public as a whole and whether they possess practical feasibility and fair standards. The ongoing hearing in the National Assembly at this moment is not merely a political procedure but a test of trust regarding how the public will perceive tax payment. Whether Candidate Lim Gwang-hyun can overcome that threshold will be determined by the feasibility of his policies and the consistency of his philosophy. Regardless of whether his appointment is confirmed after the hearing, the message left by today's hearing for our society is certainly significant.