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The Ministry of the Interior and Safety will expand artificial intelligence (AI) and big data-based ‘Arrears Analysis Services’ nationwide that analyze local tax arrears to predict the possibility of payment by delinquent taxpayer and support customized collection activities by delinquent type.

The ‘Arrears Analysis Service’ is a service that helps tax officials perform data-based intelligent delinquency management by providing an analysis report that can predict the possibility of local tax delinquents paying and check the amount of arrears and income level at a glance.

Using the Arrears analysis report, simple delinquents with high possibility of payment are encouraged to voluntarily pay with prior guidance, and subsistent delinquents are suspended from disposition of arrears or linked to welfare departments to protect the vulnerable.

As part of the next-generation local tax construction project, the Ministry of the Interior and Safety collaborated with Gyeonggi-do to analyze delinquent data (95 million cases) over the past five years in 31 cities and counties and developed a pilot operation for more than a year from August last year.

During the pilot operation period, the predictive performance of the analysis model was enhanced by applying 10 million delinquents per year. Utilization was also improved by adding basic living supply and demand and income level required by the field to the analysis report.

Based on the results of the pilot operation, the Ministry of the Interior and Safety plans to provide Arrears analysis services to six metropolitan cities and provinces by the end of this year, and the rest of the local governments will be gradually expanded by next year.

Jang-hoe Kim, Director of Regional Finance and Economy of the Ministry of the Interior and Safety, said, "We expect the effect of a customized collection administration that reduces arrears and saves people's livelihoods by performing delinquency management in consideration of national conditions such as payment possibility and income level."
By Staff Reporter Ho-cheon An (