“The National Tax Service (NTS) public servants are strict and inflexible.” This is one of the stereotypes people have about NTS employees. Especially about those in charge of tax audits, people often say, “They seem like they wouldn't bleed a drop even if pricked with a needle.”
What about the employees of 'Investigation Bureau 4,' which conducts special (non-regular) tax audits on corporations? Investigation Bureau 4 is nicknamed the 'grim reaper,' and is feared by businesspeople. Their role and mission are to wield the sword unflinchingly against unlawful tax evasion by corporations. However, they are not cold to everyone. They also spread positive energy through goodwill where tax administration assistance is needed.
Cho Young-tak, the Director of Division 2 of the Seoul Regional Tax Service's Investigation Bureau 4, is one of these tax officials. While entrepreneurs might avoid him due to his thorough tax audits, small-scale sewing business owners remember him as a 'grateful person.'
Director Cho has been working as an NTS official for 30 years, and for half of his public office period—15 years—he has been volunteering for tax consulting for small sewing business owners. The initiative began in 2009 when he started encouraging unregistered sewing businesses to register and qualify for tax and welfare benefits.
Sewing micro-business owners, fearful of paying high taxes if they registered, gradually opened business registrations following his persuasion. Director Cho not only assisted them with tax affairs post-registration but also gave regular tax lectures and provided one-on-one tax consultations for those in need. Once registered, these sewing micro-business owners became eligible for government support for small business owners.
The Seoul Apparel Industry Association recognized Director Cho's contributions with a plaque of appreciation. The plaque bore the inscription, "The seeds you sowed with your care and service have grown into lush trees over the years." Last year, Cha Gyeong-nam, the president of the association, nominated Director Cho for the 'Korea Civil Service Award.' In the nomination letter, Cha wrote, “Due to free consulting services, over 300 member businesses of the association registered as businesses,” and “small sewing business owners, who had been neglected for decades, could establish new foundations and opportunities. Even now, he provides free tax consulting needed for young designers' startups.”
We met Director Cho at the Annex of the Seoul Regional Tax Service to ask about his volunteer work.
―I heard you have been helping sewing micro-business owners with their tax affairs for a long time.
"It's not something particularly special. I've been helping sewing micro-business owners with their tax affairs and giving lectures related to taxes."
―When did you start?
"Was it January 2009? At the time, I was volunteering at a children's study room in Changsin-dong when a lady, who found out I was an NTS employee, asked about taxes. After explaining, I met with Cha Gyeong-nam, who was in the sewing business. Through President Cha, I learned about the poor conditions of sewing workers."
―What was the issue?
"Most of them hadn't registered as businesses. When I told them to register, they thought it meant they would have to pay a huge amount of taxes. There are many tax exemptions for small business owners, but they weren't aware of them. So, I insisted they must register and started teaching them about taxes one by one."
―It seems it was not easy to persuade them.
"I explained that just as a birth must be registered when a person is born, an enterprise must register as a business. If they earned a lot, they'd have to pay taxes, but I also told them small businesses have such-and-such benefits. Initially, they were skeptical, but as I kept approaching and providing tax support as if I were in customer service, they began to believe. Over 300 sewing business owners ended up registering."
―Why is business registration important from a tax official's perspective?
"Just as a Bank of Korea employee regards 'counterfeit bills,' NTS officials consider 'paperless transactions.' In the case of clothing, transactions typically occur in the format of 'sewing enterprise-wholesale/retail enterprise-consumer.'
With the activation of credit cards, transaction data between wholesale/retail enterprises and consumers remained. Wholesale/retail enterprises practice tax evasion by concealing sales or exaggerating purchasing expenditures. The easiest way to falsify purchasing expenditures is to record paperless purchases from unregistered enterprises. However, if sewing businesses register, they cannot record these false purchases on their books. This leads to the normalization of irregularities."
―What benefits can one receive from registering as a business?
"After registering as a business, they can receive business environment improvement support, such as clean workplace support, and policy financial support. Previously, they couldn't enjoy these benefits as they hadn't registered their establishment."
―Did the sewing business owners believe you from the start?
"Initially, they were doubtful. Still, many sewing business owners registered with the mindset that a tax official must know better than they do. When I distributed my business card during lectures, sometimes they would contact me and ask, 'Is it okay to do this and that?' When I asked, 'Where are you from?' they wouldn't answer, likely out of fear of being audited."
―What did you mainly talk about in the lectures?
"I always talk about three things: never accept paperless purchases, don't engage in card fraud, and don't evade taxes. These are unwritten rules. Lectures mainly cover education related to entrepreneurship and tax settlement. During lectures, I also emphasize not to fear the NTS too much, explaining that the NTS mainly targets large corporations and not small businesses."
―After long-term volunteering, it seems your perspective on the sewing industry is unique.
"Though semiconductors and automobiles drive our country's economy now, in the 1960s and 70s, the sewing and textile industry was the backbone of Korea. There are still many small businesses today, but I believe people shouldn't forget their contributions."
―It seems you often feel the harsh perception of NTS officials from outsiders.
"NTS officials are in charge of national revenue. It's a necessary role for the country to function. Despite the current challenging conditions, everyone is working hard in their positions. I hope people don't find NTS staff too intimidating and offer more encouragement."
―When did you feel most fulfilled while volunteering?
"A mother who was the head of a single-parent family once asked me how to become an NTS official. When I asked why, she said she wanted to raise her child to be an NTS official like me. I was very moved. It was also fulfilling when sewing business owners said they saw officials in a new light. If I had sought lecture fees or volunteered for career advancement, I don't think I could have felt such emotion. Seeing business owners succeed with my help made me happier."